Activity

The European Central Bank (ECB) has announced a significant two-track plan to integrate distributed ledger technology (DLT) into its financial system, aiming to modernize payment and securities settlement using central bank money.
Pontes: The Short-Term Solution
The first track, named Pontes, will establish a short-term solution by connecting blockchain-based DLT platforms with TARGET Services. TARGET Services are a suite of financial services developed and operated by the Eurosystem to facilitate the flow of payments and securities within the eurozone. These services include T2 (for large payments), T2S (for securities settlement), and TIPS (for instant payments), all of which settle in central bank money.
A pilot for Pontes is slated to launch by the end of the third quarter of 2026. This pilot will draw upon insights gained from the ECB’s extensive DLT trials in 2024, which involved over 50 experiments and 64 participants. The goal is to test a unified settlement system leveraging central bank money.
Appia: The Long-Term Vision
The second track, Appia, represents a more ambitious, long-term approach. Its objective is to cultivate an “integrated ecosystem in Europe that also facilitates safe and efficient operations at the global level.” This track will involve continued analysis of DLT-based solutions and close collaboration with both public and private stakeholders to build a robust and future-ready financial infrastructure.
The ECB emphasizes that this dual-track strategy aligns with the Eurosystem’s commitment to fostering innovation while maintaining the safety and efficiency of financial market infrastructures. This move is seen as a crucial step towards creating a modern and integrated financial ecosystem in Europe.

Video courtesy of Escrow.com

Video courtesy of Escrow.com