banking settlement systems

The European Central Bank has launched Pontes, a new platform for settling transactions in digital securities. The move is part of the Eurosystem's broader work on blockchain and digital market infrastructure, aiming to let financial institutions settle digital asset trades using central bank money. The initiative is drawing attention across European banking and fintech circles as a step toward modernising euro-area settlement systems.

Citi chief executive Jane Fraser said banks are still waiting for central banks to make payment systems operate around the clock, seven days a week. Her comments highlight a growing gap between always-on private payment services and traditional central bank settlement hours, a sticking point for instant cross-border transactions and the broader tokenisation of finance.

The European Central Bank has set out three possible models for placing central bank money on blockchain-based systems, an area it has been exploring through work on a digital euro and wholesale settlement. The move signals the bank is weighing how tokenised forms of central bank money could support financial markets. Details of the models and their implications are still being digested by markets.

The European Central Bank is examining three potential approaches to issuing central bank money on blockchain-based systems. The move reflects growing institutional interest in tokenized settlement and digital finance infrastructure in the euro area. Details of the three options were not immediately available, but the topic feeds into ongoing debates about central bank digital currencies and the future of onchain money.

Banking industry analysis is examining how tokenisation — the conversion of assets such as bonds, funds and deposits into digital tokens on blockchain-based infrastructure — is changing global finance. Commentary from The Banker suggests tokenised assets could streamline settlement, cut costs and open markets to new participants, while banks and regulators weigh how to adapt custody, compliance and payment systems to this shift.