ECB plans to buy tokenized bonds with its own funds

The European Central Bank plans to acquire a limited share of its reserves in euro-denominated tokenized securities, according to its announcement. The purchases would give the ECB direct exposure to blockchain-based financial markets while testing how such assets can be held and managed by a central bank.

Settlements for these transactions are intended to occur in central bank money through Pontes, the Eurosystem platform designed to connect the ECB’s payment system with tokenized finance. Pontes aims to enable wholesale transactions to settle on blockchain-based markets using central bank money, and ECB executive board member Piero Cipollone described the platform as bringing "the stability and trust of central bank money" to the tokenized finance ecosystem.

Initially, the ECB said it would focus on euro-denominated tokenized securities issued by euro-area governments, regional authorities, agencies and European supranational institutions. The executive board will decide the precise size, timing and operational particulars of any purchases after completing preparatory work; those choices will partly depend on how issuance of tokenized securities and the broader European tokenized finance market evolve.

Pontes is the first component of the Eurosystem’s broader strategy to introduce central bank money into tokenized finance. The ECB plans to add services and extend operating hours over time, with full implementation of Pontes expected by 2028. The announcement frames the purchases as part of the ECB’s effort to test technology across functions such as buying tokenized bonds, settlement and portfolio management.