ECB to invest in tokenised securities using Pontes settlement platform

The European Central Bank (ECB) has initiated preparatory work to invest a small portion of its own funds in tokenised securities. This initiative aims to gain practical experience as an investor and develop institutional expertise in distributed ledger technology (DLT) within financial markets.

The investments will be settled in central bank money through Pontes, the Eurosystem’s settlement solution for DLT transactions. Initial investments will focus on euro-denominated securities issued by euro area central and regional governments, agencies, and European supranational institutions.

This step supports the Eurosystem’s strategy to modernize central bank money for the digital age. Key elements include Pontes, launched today, and the Appia initiative, which will create a blueprint for a tokenised financial ecosystem in Europe.

By investing directly, the ECB will experience the full investment lifecycle, including trade execution, settlement, systems, and portfolio management activities. The ECB’s Executive Board will determine the operational details and timing of investments after completing the preparatory work, considering developments in tokenised issuances and the broader ecosystem.

More information about Pontes and the Eurosystem’s initiatives in tokenised finance is available on the ECB’s website.