European Central Bank Unveils Tokenized Finance Plan to Enhance EU Financial Autonomy

Odaily News The European Central Bank (ECB) announced a timeline on Wednesday for building a tokenized wholesale financial ecosystem for the eurozone, aiming to ensure the euro's continued status as an international currency.

The strategy includes two core projects: Pontes, a transaction layer based on Distributed Ledger Technology (DLT), is expected to launch in the third quarter; Appia is a long-term project planned to continue until 2028, by which time the Eurosystem will release a blueprint for a tokenized financial ecosystem covering infrastructure, governance frameworks, and standard-setting.

European policymakers have positioned financial infrastructure as a geopolitical issue. A previous analysis by the European Parliament noted that Europe's reliance on foreign payment networks constitutes a "structural vulnerability" to its financial sovereignty. This plan aims to reduce dependence on non-European and US dollar-centric financial systems, thereby enhancing the EU's strategic autonomy and financial resilience.

ECB Executive Board member Piero Cipollone stated that Appia aims to build a pathway from the current financial system to the future tokenized market, anchored in central bank money.