ECB to Pilot Blockchain Euro Settlements by 2026

ECB Sets 2026 Launch for Blockchain Settlement Pilot Under Pontes Initiative

In a significant move toward modernizing Europe’s financial infrastructure, the European Central Bank (ECB) has unveiled plans to pilot a blockchain-based settlement system using central bank money. The initiative, part of a broader two-track strategy, will begin testing by the third quarter of 2026 under a project known as Pontes.

The ECB’s strategy is aimed at enabling distributed ledger technology (DLT) platforms to interact seamlessly with TARGET Services, the eurozone’s core financial infrastructure. TARGET Services are designed to facilitate real-time payments and securities transactions across the euro area.

“The decision is in line with the Eurosystem’s commitment to supporting innovation without compromising on safety and efficiency in financial market infrastructures,” the ECB noted in its announcement.

Pontes: Bridging Traditional Systems with DLT

The Pontes project represents the short-term track in the ECB’s two-part plan. Its core objective is to build an interoperable bridge between DLT platforms and existing central bank payment systems. By integrating with TARGET Services, Pontes will test a unified euro settlement environment that maintains the integrity of central bank money.

The pilot, set for late 2026, will leverage insights from the ECB’s 2024 DLT trials, which involved over 64 participants and 50+ experimental setups. These trials settled €1.6 billion (approx. $1.88 billion) in tokenized assets, underlining strong market appetite for blockchain settlement with central bank backing.

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Appia: Long-Term Vision for a DLT-Driven Ecosystem

The second track, named Appia, is a long-term initiative focused on building a more integrated and globally interoperable ecosystem for wholesale financial settlement using DLT.

Appia will continue research on how blockchain can enhance capital markets, reduce fragmentation, and increase operational efficiency. The ECB will collaborate closely with private and public stakeholders to shape the future of programmable finance and cross-border interoperability.

To keep the industry involved, the Eurosystem plans to establish dedicated market contact groups for both Pontes and Appia, with a call for expressions of interest to join the Pontes group expected soon.

Experimental use cases for payment and settlement methods using Trigger Solution, TIPS Hash-Link, and Full DLT Interoperability. Source: ECB

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DLT Trials Confirm Industry Demand for Central Bank Settlement

In conjunction with the announcement, the ECB released a comprehensive report on its 2024 DLT experiments. Key takeaways include:

• €1.6 billion in tokenized assets were settled using DLT and central bank money.

• Participants expressed a clear preference for atomic, programmable settlement.

• Blockchain technology showed potential to reduce inefficiencies, complexity, and fragmentation in European capital markets.

However, the ECB emphasized that broader adoption will require:

• Legal harmonization across member states

• Standardization of technical frameworks

• An interoperable link with TARGET Services "as soon as feasible"

Global Central Banks Explore Blockchain for Financial Market Infrastructures

The ECB’s announcement aligns with a growing global trend. In 2023, the Bank of England, in collaboration with the Bank for International Settlements (BIS) Innovation Hub, conducted successful DLT-based simulations for large-scale interbank transactions. The results demonstrated blockchain’s ability to reduce costs and accelerate real-time gross settlement (RTGS) systems by connecting with other financial networks.

Conclusion: A Major Milestone in European Financial Innovation

With the launch of Pontes and Appia, the ECB signals a clear commitment to exploring blockchain as a backbone for future financial systems. If successful, this pilot could set the foundation for central bank-backed DLT settlements in Europe—ushering in a new era of speed, security, and transparency in capital markets.

As 2026 approaches, all eyes will be on how Europe balances innovation with financial stability while preparing for a digital financial future.