ESM statement on the launch of ECB’s Pontes initiative

(Luxembourg) - The European Stability Mechanism (ESM) welcomes the launch of the Pontes platform by the Eurosystem today. Pontes will enable the settlement in central bank money of wholesale transactions using distributed ledger technology (DLT), connecting new DLT platforms with trusted central bank infrastructure.

This marks an important milestone in the continued evolution of Europe’s financial market infrastructure, and the development of a European ecosystem for tokenised finance.

As financial markets become increasingly digital, initiatives such as Pontes can support more integrated, efficient, and resilient capital markets. By preserving the role of central bank money as trusted settlement asset, Pontes also contributes to the foundations of a strong and credible digital financial ecosystem in Europe, strengthening the international role of the euro.

“Pontes is an important development for the euro and a significant milestone in the evolution of Europe's financial market infrastructure. The ESM supports the Eurosystem’s efforts to explore how innovative technologies enhance the efficiency and resilience of financial markets. Pontes will help deepen European financial integration, support innovation, and strengthen the international role of the euro", says Pierre Gramegna, Managing Director of the ESM.

Pontes illustrates the importance of cooperation between public institutions and market participants in shaping the future of European financial markets.