ECB to Pilot Blockchain-Based Euro Settlement System by 2026 Under Pontes Initiative

The European Central Bank (ECB) is moving ahead with a blockchain-based settlement system designed to modernize how financial transactions are settled across the eurozone. Announced Tuesday, the Pontes initiative—a key part of a broader two-track strategy—will pilot by the third quarter of 2026, linking distributed ledger technology (DLT) platforms directly with the ECB’s core payment infrastructure.

ECB commits to distributed ledger technology settlement plans with dual-track strategy

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

European Central BankEuropean Central Bank

This pilot reflects the ECB’s intent to bring central bank money into the evolving world of tokenized finance, allowing for secure and efficient settlement of digital assets on blockchain networks.

“The decision is in line with the Eurosystem’s commitment to supporting innovation without compromising on safety and efficiency in financial market infrastructures,” the ECB said.

Pontes: Bridging DLT and Central Bank Infrastructure

Pontes—Latin for “bridges”—is designed as a short-term solution to connect DLT platforms with TARGET Services, the ECB’s system for handling high-value payments and securities across Europe. The pilot will leverage findings from the ECB’s 2024 exploratory DLT trials, which involved 64 participants and over €1.6 billion in settled value.

The Eurosystem’s exploratory work on new technologies for wholesale central bank money settlement

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

European Central BankEuropean Central Bank

These trials confirmed strong market demand for settling tokenized assets in central bank money and highlighted blockchain’s potential to reduce fragmentation and inefficiencies in Europe’s capital markets.

Appia: The Long-Term Vision

In parallel, the ECB has launched Appia, a long-term research track focused on developing a fully integrated DLT-based financial ecosystem across Europe. While Pontes offers near-term infrastructure, Appia aims to explore deeper applications of blockchain for wholesale settlement systems in collaboration with public and private partners.

The ECB also plans to establish market contact groups for both Pontes and Appia, seeking direct feedback from stakeholders. A formal call for participation in the Pontes group is expected soon.

Global Momentum for Blockchain Settlements

The ECB’s initiative aligns with a growing international push toward blockchain-based settlement systems. In 2023, the Bank of England, in partnership with the Bank for International Settlements, demonstrated a successful DLT prototype for interbank payments. That project showed how linking real-time gross settlement (RTGS) systems with DLTs could speed up cross-border transactions while reducing costs.

Back in Europe, the ECB’s own findings show that DLT can enable atomic, programmable settlement—but also stressed the need for standardized legal frameworks and technological interoperability to unlock its full potential.