ECB launches two-track road to DLT settlement in central-bank money

The European Central Bank’s Governing Council has announced a dual-track strategy that will allow wholesale transactions on distributed-ledger platforms to settle in euros held at the central bank. The decision comes after a year-long exploratory programme involving 64 market participants and more than 50 trials

Track one: Pontes

• Purpose: Provide a short-term solution that links permissioned DLT platforms to existing TARGET Services.

• Timeline: Pilot launch planned for the end of Q3 2026.

• Features: Builds upon components proven during the 2024 experiments and aligns with TARGET’s legal and operational standards.

• Next step: A call for expressions of interest to join the Pontes market contact group will be published soon.

Track two: Appia

• Purpose: Explore a long-term, future-ready ecosystem that natively supports DLT settlement in central-bank money, both in Europe and globally.

• Scope: Ongoing analysis of technology choices, regulation and cross-border interoperability, carried out in partnership with public and private stakeholders.

• Engagement: A dedicated market contact group will foster continuous dialogue as the design matures.

Why it matters

1. Regulatory clarity: Banks and market infrastructures now have a clear timetable for testing DLT settlement under the supervision of the Eurosystem.

2. Digital-euro readiness: The initiative complements the retail digital-euro project by ensuring wholesale rails are equally modern.

3. Innovation without compromise: By anchoring DLT tokens to central-bank money, the ECB aims to retain the safety and efficiency of existing high-value payment systems while embracing new tech.

Looking ahead

Over the next 18 months the ECB will finalise technical specifications for Pontes, consult on Appia’s target architecture and publish guidance for additional DLT experiments. Market feedback gathered through the contact groups will feed directly into both tracks, so staying engaged is key.

Read the full press release: https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.pr250701~f4a98dd9dc.en.html