ECB Greenlights Central Bank Money for Pontes and Appia DLT Projects
With its latest decision, the ECB will test “Pontes” by Q3 2026 and roll out “Appia” later, both aimed at settling distributed ledger transactions in central bank money.
The ECB approved research efforts to use central bank money to settle distributed ledger technology (DLT) transactions via two distinct programs. The decision was taken at the ECB's July 1, 2025, council meeting in Frankfurt to enhance efficiency and safety in financial market infrastructures.
Global DLT Solutions Under Development
Pontes will connect DLT platforms directly to the Eurosystem's TARGET services, ensuring a seamless flow of cash and securities across the euro area. The short-term pilot is scheduled for launch by Q3 2026.
Appia will extend the work by evaluating broader DLT solutions and interoperability on a global scale. The longer-term initiative will analyze and support global DLT operations beyond the European framework.
Both programs follow exploratory work on wholesale central bank money settlement carried out from May to November 2024. The findings highlighted cost reductions and mitigated credit and settlement risks when using DLT for transaction processing.
The decision is in line with the Eurosystem's commitment to supporting innovation without compromising on safety and efficiency in financial market infrastructures,
the ECB said in its release endorsing the projects.
Related: ECB Develops Payment Infrastructure on DLT
Building on Previous DLT Research
Global central banks have increasingly investigated DLT for wholesale payments and securities settlement. In late 2024, the ECB published a report on its initial DLT experiments, noting benefits including lower transaction costs and reduced operational risks.
Under the Eurosystem's digital euro timeline, central bank digital currency pilots are also underway. However, Pontes and Appia focus specifically on integrating existing central bank money with decentralized ledger platforms to modernize post-trade processes rather than creating new digital currencies.
The program incorporates features from the Eurosystem's 2024 exploratory DLT work, where 64 participants completed over 50 trials and experiments between May and November. The ECB published a report outlining the results of this exploratory work.
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