ECB launches Pontes platform for settlements in digital securities — Cyprus Mail

In Cyprus, the European Central Bank this week launched the Pontes service, which connects its payment system with blockchain-based financial markets. The platform enables banks and investors to settle blockchain transactions in euros backed by the ECB, rather than in stablecoins or other forms of private money, Cyprus Mail reports.

First users of the platform

The first users of Pontes, including Deutsche Bank, Santander and clearing company Clearstream, have completed their connection to the platform. They will be able to use the service from the start of its operation.

Initially, the platform will operate on weekdays from 8:00 to 16:00 Central European Time. The ECB said it would expand its services in the future.

The central bank noted that the technology could speed up and make asset operations more efficient by combining several stages of their life cycle and ensuring process automation.

More current news is available on the UA.News Telegram channel Telegram.

Investments in digital securities

The ECB also intends to invest a small portion of its own funds, amounting to €23 billion, in blockchain-based securities. The central bank will focus on highly rated euro-denominated debt instruments issued by public institutions.

ECB Executive Board member Isabel Schnabel said last month that central banks should move to blockchain infrastructure to reduce dependence on private alternatives. Similar initiatives are also being developed by the Swiss National Bank under Project Helvetia and by the Bank of England through the Digital Securities Sandbox.

The ECB is also working in parallel on a digital euro for consumers and aims to launch it in 2029.