Why Do Tokenized Securities Need Settlement in Central Bank Money?

Settlement in central bank money means a tokenized bond or share is paid for not with a liability of a commercial bank or a stablecoin issuer, but with central bank reserves, which carry no credit risk. On September 21, 2026, the Eurosystem launched Pontes, a service that lets wholesale trades in tokenized assets on blockchain platforms settle in that kind of money.

What did the ECB launch and who is connected?#

According to the ECB press release, Pontes is the first major step in the Eurosystem's programme to adapt central bank money to tokenized finance. It bridges distributed-ledger platforms with the Eurosystem's existing payment infrastructure. It grew out of 2024 trials in which market participants said access to a risk-free settlement asset was essential for wider tokenization.

At launch, 13 market participants are connected — including Deutsche Bank, Santander, Société Générale, KfW and the European Investment Bank — plus the Bundesbank as a separate participant. There are four DLT operators: Axiology, Cashlink, Clearstream and SWIAT. The service starts with core functions; more features and longer operating hours will follow, with full implementation targeted for 2028. In parallel, the Eurosystem and Danmarks Nationalbank are developing Appia, whose blueprint is also due by 2028.

How is central bank money different from a tokenized deposit or a stablecoin?#

All three can settle a trade, but each is a claim on a different debtor:

• Central bank money — banks' balances at the central bank. A central bank cannot default in its own currency, so settlement carries no credit risk.
• Tokenized deposit — a digital liability of a specific commercial bank. It is exactly as safe as that bank. More in our piece on tokenized deposits vs stablecoins.
• Stablecoin — a liability of the issuer, backed by reserves. Holders depend on reserve quality and the redemption process.

When two parties swap billions of euros in assets, the gap between "almost risk-free" and "no credit risk" matters. That is why large institutions prefer to finalise settlement in central bank money.

Why does the settlement asset matter for tokenization?#

Every securities trade has two legs: delivering the asset and paying for it. The core safeguard is delivery versus payment — the asset moves only at the same moment as the cash. If the asset is on a blockchain while the cash travels through legacy banking rails, the legs drift apart in time, creating the risk that one side performs and the other does not. We covered the cash leg in detail in our delivery-versus-payment explainer.

Pontes is meant to close that gap for the euro: a trade on a blockchain platform can complete with payment in central bank money, with no private token in between.

What changes for a retail investor?#

Directly, nothing. Pontes is built for wholesale trades between banks and financial institutions, not for retail clients. Indirectly, it could speed up issuance of tokenized euro government and corporate bonds. According to One Asset, the ECB is also preparing to invest a small portion of its own funds in tokenized securities issued by euro-area governments, agencies and supranationals, settling through Pontes; details and timing are still being worked out.

What are the limits of Pontes?#

• Infrastructure, not yet a market. No settlement volumes have been published; One Asset notes that the launch shows availability rather than significant activity.
• Core functions and limited hours. Expansion is phased through 2028.
• Euro and wholesale only. Other currencies and retail payments are out of scope.
• Connected platforms only. There are four operators so far; assets on an unconnected blockchain cannot settle this way.
• Settlement does not remove asset risk. Central bank money protects the cash leg, not the bond's price, the token holder's rights or the legal structure of the issue.