ECB plans to launch blockchain euro settlement pilot in 2026

Odaily News The European Central Bank (ECB) will launch a blockchain settlement pilot by the end of 2026 through a new program called "Pontes", which aims to connect the distributed ledger technology (DLT) platform with the eurozone's core payment system. The ECB approved a two-track plan on Tuesday to settle DLT transactions using central bank money, a move that could pave the way for the modernization of Europe's financial system. The first path, "Pontes", will focus on short-term solutions and is expected to start the pilot at the end of the third quarter of 2026 by connecting the blockchain-based DLT platform with the "TARGET" financial services system developed and operated by the Eurosystem (which aims to promote payments and securities circulation in the eurozone). The ECB said the pilot will use the results of its 2024 DLT exploratory trial (including more than 50 experiments and 64 participating institutions) to test the unified settlement system of central bank money. "This decision is in line with the Eurosystem's commitment to support innovation while ensuring the security and efficiency of financial market infrastructure." (Cointelegraph)