The European Central Bank (ECB) has taken a significant step toward modernizing financial infrastructure, announcing the approval of a plan to settle transactions recorded on distributed ledger technology (DLT) using central bank money. The initiative follows a two-track approach, aiming to support innovation while ensuring safety and efficiency.
The first track, named "Pontes" (Latin for "bridges"), is a short-term solution. Pontes will offer a Eurosystem DLT-based solution, linking DLT platforms and TARGET Services to settle transactions in central bank money. The Eurosystem plans to launch a pilot for Pontes by the end of the third quarter of 2026. This phase will incorporate features used in the Eurosystem's exploratory work on DLT in 2024.
The second, long-term track is dubbed "Appia" (after the Appian Way). Appia focuses on a long-term approach for an innovative and integrated ecosystem in Europe that also facilitates safe and efficient operations at the global level. This track may involve a wholesale CBDC or even a "European ledger," a single-platform solution where assets and cash would coexist on one chain.
This dual strategy builds on the Eurosystem's exploratory work conducted between May and November 2024, which involved 64 participants in over 50 trials and experiments. These trials were successfully concluded, with over 200 transactions and a total value of €1.59 billion settled. The results indicated that DLT can offer benefits such as reducing costs and countering credit and settlement risks.
Piero Cipollone, Member of the ECB's Executive Board, stated, "We are embracing innovation without compromising on safety and stability." He added that the initiative is an important contribution to enhancing European financial market efficiency. To ensure continuous dialogue with the market, the Eurosystem will establish dedicated market contact groups for both Pontes and Appia.