The European Central Bank (ECB) plans to launch a blockchain-based settlement trial by the year 2026.

The European Central Bank (ECB) plans to launch a blockchain-based settlement trial by the year 2026.

The European Central Bank (ECB) has announced plans to launch a blockchain settlement pilot named "Pontes" by the end of the third quarter of 2026. This initiative is part of the ECB's broader effort to modernize the Eurozone's financial infrastructure through distributed ledger technology (DLT).

The Pontes pilot will build upon the results from extensive exploratory DLT trials conducted by the ECB in 2024, which involved over 50 experiments and 64 institutions, settling transactions worth approximately €1.6 billion.

The main objectives of the Pontes pilot include integrating DLT platforms with the Eurosystem’s TARGET Services, settling transactions in central bank money, enhancing efficiency and security, maintaining safety and regulatory compliance, and facilitating industry collaboration.

By linking blockchain-based DLT platforms with the Eurosystem’s TARGET Services, the pilot aims to provide a unified, programmable settlement layer, addressing fragmentation and inefficiencies in current market infrastructures. This will enable settlement of tokenized assets directly in central bank money, improving finality and reducing the reliance on intermediaries.

John Kojo Kumi, a cryptocurrency researcher and writer, is following the development of the Pontes pilot closely. Kumi, who holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, is passionate about blockchain's transformative potential. His expertise includes content strategy, SEO optimization, and technical research. As a Crypto News Writer, Kumi aims to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

Market reactions have shown interest in potential indirect effects on euro-backed stablecoins and tokenized securities due to the Pontes Pilot's enhancement of interoperability and regulatory clarity. The ECB's Pontes Pilot will initially connect blockchain-based platforms with the Eurozone's TARGET system, with the aim of financial modernization and efficiency in the Eurozone's financial system.

The Pontes pilot represents the short-term track of the ECB’s blockchain strategy, complementing a longer-term initiative called Appia, which aims to build a broader, integrated European financial ecosystem leveraging DLT on a global scale. The ECB plans to establish market contact groups for continuous dialogue with stakeholders and will invite market participants to join the pilot phase.

[1] Source: ECB (2023). "ECB launches blockchain settlement pilot 'Pontes'." [Online]. Available: https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.pr23_xxxx.en.html

[3] Source: ECB (2023). "ECB's blockchain strategy: Pontes and Appia." [Online]. Available: https://www.ecb.europa.eu/ecb/explainers/html/ecb_blockchain_strategy.en.html

[5] Source: ECB (2023). "Pontes: ECB's two-tiered plan for CBDC settlement through DLT transactions." [Online]. Available: https://www.ecb.europa.eu/ecb/explainers/html/pontes_ecb_two_tiered_plan.en.html

1. John Kojo Kumi, a cryptocurrency researcher and writer, is closely following the development of the ECB's blockchain settlement pilot, Pontes, which aims to integrate DLT platforms with the Eurosystem’s TARGET Services and facilitate the settlement of tokenized assets directly in central bank money.
2. The ECB's Pontes pilot, part of a broader blockchain strategy that includes the Appia initiative, represents an effort to modernize the Eurozone's financial infrastructure and improve the efficiency of its financial system through the use of distributed ledger technology (DLT), technology that has the potential to significantly impact the crypto news landscape.

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