The European Central Bank (ECB) is set to pilot a blockchain based Euro settlement system by the end of 2026.
The system will use distributed ledger technology (DLT) transactions using central bank money to facilitate payments and securities settlements across the bloc.
This pilot will reportedly use findings from the ECB’s exploratory DLT trials in 2024, including over 50 experiments and 64 participants, to test a unified settlement system with central bank money.
In a statement ECB said this plan will exhibit ECB’s commitment to safety and innovation.
“This move reflects the Eurosystem’s commitment to supporting innovation while safeguarding safety and efficiency in financial markets.”
ECB
ECB’s plan follows a dual-track approach. The first track Pontes will focus on short term implementation, serving as a bridge between blockchain networks and traditional payment rails.
The pilot aims to test central bank money settlement in a unified system built on blockchain architecture.
The second track known as Appia will take a more long term approach.
It aims to build a fully integrated DLT-based settlement ecosystem that is not only efficient at the European level but also compatible with global financial operations. This phase will involve continued research, industry collaboration, and technical development.
To facilitate ongoing dialogue, the ECB plans to establish dedicated market contact groups for both Pontes and Appia. A public call for expressions of interest to join the Pontes working group is expected soon.
As Europe moves toward tighter DeFi regulations by 2026 under MiCA, the ECB’s move signals its intention to lead innovation in secure, efficient financial infrastructures.
