ECB Introduces Pontes for Central-Bank Settlement of Tokenized Assets
ECB Launches Pontes for Central-Bank Settlement of Tokenized Assets
The European Central Bank has launched Pontes, an initiative focused on enabling central-bank settlement for tokenized assets.
Tokenization involves representing assets on distributed-ledger or other digital systems. Central-bank settlement refers to the use of central-bank money to complete transactions, a process intended to provide a stable settlement foundation for financial market activity.
Pontes places the ECB among institutions examining how existing central-bank settlement infrastructure can support the growing use of tokenized assets. Its launch marks a step toward connecting tokenized financial markets with central-bank settlement arrangements.
