2 weeks ago
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What changed
- Market DLT platforms have a live connection to TARGET Services.
- The cash leg can settle in central bank money.
- Assets can remain on their existing ledgers.
What stayed the same
- Access remains limited to eligible institutions.
- The ECB has not created a shared public blockchain.
- Each market still controls its own asset infrastructure.
What the ECB launched on September 21
The European Central Bank confirmed that the initial launch of Pontes took place on September 21. It connects market-operated distributed ledger technology platforms with TARGET Services, the infrastructure the Eurosystem already uses for large-value payments and securities settlement.
Distributed ledger technology, or DLT, is the broader category that includes blockchains. A bank, central securities depository or regulated trading venue can record a tokenized bond or another financial asset on its own ledger. The new service supplies a route for the corresponding euro payment to reach Eurosystem...
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