The European Central Bank (ECB) has announced it will pilot a blockchain-based settlement system by late 2026 as part of its ambitious new initiative, Pontes, aimed at modernizing how financial markets transact in Europe.
Pontes is designed to serve as a bridge linking distributed ledger technology (DLT) platforms—such as tokenized asset exchanges—to the Eurosystem’s TARGET Services, which currently underpin payment and securities transfers across the eurozone.
The ECB said the pilot will build on extensive trials conducted in 2024 involving over 50 experiments and 64 financial institutions, which tested the potential of real-time settlement in central bank money across a range of DLT use cases.
“This approach underscores our commitment to fostering innovation while ensuring that financial infrastructures remain robust, secure, and efficient,” the ECB said in Tuesday’s announcement.
The pilot is slated to launch by the end of the third quarter of 2026.
Appia to Develop Long-Term Blockchain Settlement Ecosystem
While Pontes will focus on short-term integration, the ECB’s second track—dubbed Appia—will target a more comprehensive overhaul of Europe’s financial infrastructure.
Appia’s goal is to create a fully integrated settlement ecosystem that can scale globally and support future innovations in tokenized securities and programmable payments.
Under this track, the ECB plans to deepen its collaboration with both public institutions and private sector stakeholders to explore long-term applications of DLT in wholesale markets.
The Eurosystem will also set up dedicated market contact groups for both initiatives to gather industry feedback and keep market participants engaged in the design process.
A formal call for institutions to join the Pontes working group is expected in the coming months.
Global Momentum Builds for Blockchain Settlement
Europe isn’t alone in testing the limits of blockchain for financial markets. In 2023, the Bank of England and the Bank for International Settlements conducted a landmark trial demonstrating that DLT could reduce costs and improve the speed of interbank settlement by linking traditional real-time gross settlement (RTGS) systems with tokenized ledgers.
The ECB’s own report on its recent experiments highlighted significant demand from banks and market infrastructure operators to settle tokenized assets using central bank money.
During the trials, more than €1.6 billion ($1.88 billion) worth of transactions were settled, validating the appeal of atomic settlement capabilities and programmable money for capital markets.
However, the report stressed that achieving these benefits at scale will require clearer legal frameworks, common technical standards, and seamless interoperability with existing euro payment infrastructure.
Quick Facts
- The ECB will launch the Pontes DLT settlement pilot by Q3 2026.
- A longer-term Appia initiative aims to build a unified blockchain settlement ecosystem.
- Trials settled €1.6 billion in tokenized transactions, underscoring market interest.
- Global central banks are increasingly exploring blockchain to modernize payments and securities settlement.
