# ECB launches Pontes to power tokenized finance

> Europe's central bank unveils a new tool to settle wholesale transactions in digital assets using central bank money.
- Title: ECB launches Pontes to power tokenized finance · Pymnts
- Summary: Europe's central bank unveils a new tool to settle wholesale transactions in digital assets using central bank money. The ECB is building infrastructure to…
- Keywords: european central bank, digital euro, pontes, tokenization, central bank money, wholesale transactions, distributed ledger technology, christine lagarde, financial infrastructure, european payments, business, finance
- Source: Pymnts — https://pymnts.com/cbdc/2026/ecb-expands-digital-euro-efforts-with-pontes-tokenization-tool
- Author: PYMNTS
- Published: 2026-09-21T13:02:03+00:00
- Read time: 1 min
- Topics: european central bank, digital euro, pontes, tokenization, central bank money, wholesale transactions, distributed ledger technology, christine lagarde, financial infrastructure, european payments, business, finance
## ECB launches Pontes tokenization tool
The European Central Bank announced Pontes on Monday, a new solution that allows wholesale transactions in tokenized assets to be settled using central bank money.
## What tokenization does
Tokenization represents assets as digital tokens on distributed ledger networks. It bundles multiple steps of an asset's lifecycle, from issuance to settlement, enabling faster transactions and automation through smart contracts.
## Built on 2024 testing success
Pontes follows the Eurosystem's 2024 tests using distributed ledger technology for central bank money settlement. Stakeholders identified access to a risk-free settlement asset as critical for wider adoption.
## Rollout timeline to 2028
Pontes will start with core services and gradually add enhanced features and longer operating hours before full implementation by 2028. A separate retail digital euro pilot is expected to begin in the second half of 2027.
## Reducing reliance on American payment systems
The digital euro project gained momentum from concerns about overreliance on American payment providers like Mastercard and Visa. The ECB sees tokenized finance as a way to provide an alternative payment infrastructure for Europe.
## Key takeaway

The ECB is building infrastructure to make tokenized finance faster and more efficient while reducing European reliance on American payment systems.