The European Central Bank has adopted a dual-track strategy to integrate distributed ledger technology (DLT) with Target settlement services in the wholesale market.
This initiative, resulting from extensive exploratory work, will allow for the settlement of DLT transactions using central bank money. From May to November 2024, 64 participants took part in over 50 trials and experiments.
The immediate plans focus on a two-track approach: the first track, ‘Pontes,’ provides a short-term offering, including a pilot phase, while the second track, ‘Appia,’ aims at developing a long-term solution.
The Eurosystem intends to launch a pilot for Pontes by the end of the third quarter of 2026, which will assess the feasibility of additional enhancements in alignment with Target Services’ operational, legal, and technical standards.
Appia will work towards establishing a comprehensive integrated ecosystem in Europe that connects with other global financial market infrastructures.
To foster ongoing communication with the market, the Eurosystem will set up dedicated market contact groups for both Pontes and Appia, with a call for expressions of interest for the Pontes contact group expected soon.