ECB to put its own money into tokenized securities via new Pontes DLT

The European Central Bank has announced plans to invest a small portion of its own funds in tokenized public‑sector securities, with trades to be settled in central bank money through Pontes, the Eurosystem’s distributed ledger technology settlement platform launched on Monday. The ECB said the purchases are intended to provide direct experience across the full investment lifecycle, including trade execution, settlement, systems and portfolio management.

The securities to be considered for initial investments are euro‑denominated instruments issued by euro‑area central and regional governments, public agencies and European supranational institutions. The purchases will be made from a non‑monetary‑policy portfolio that generates income used to help cover the central bank’s operating expenses.

Operational details and the timing of transactions will be determined by the ECB’s Executive Board after preparatory work is completed. By conducting these transactions, the ECB aims to test how tokenized assets can be integrated into existing central bank frameworks and to gain practical knowledge of DLT‑based market operations.

The European Stability Mechanism highlighted that Pontes is intended to link emerging DLT platforms with established central bank infrastructure, helping to ensure central bank money remains the settlement asset as financial markets become more tokenized. The initiative reflects the Eurosystem’s effort to explore technical and operational aspects of tokenization while preserving the role of central bank money in settlement.