ECB launches Pontes to settle blockchain transactions in central bank money
The European Central Bank has launched Pontes to settle blockchain based wholesale transactions in central bank money while preparing to invest part of its €23 billion own funds portfolio in digital securities. SummaryECB has launched Pontes to settle blockchain based transactions using central bank euros.Deutsche Bank, Santander and Clearstream are among the first institutions onboarded to the service.ECB plans to invest a small portion of its €23 billion own funds portfolio in highly rated blockchain based debt securities. According to the European Central Bank, the new service connects distributed ledger technology platforms used by financial market participants with the Eurosystems TARGET Services, allowing transactions involving tokenized assets to settle in central bank euros. Deutsche Bank, Santander and securities clearing group Clearstream are among the first institutions to complete onboarding and gain access to the platform. Pontes will initially operate between 8 a.m. and 4 p.m. CET on business days, with the ECB planning to extend its operating hours and functions over time. The launch puts into operation a project that the central bank has been developing as financial institutions experiment with issuing, trading and settling securities through distributed ledgers. Unlike settlement through privately issued stablecoins or other forms of commercial money, Pontes gives participating









