ECB Launches Tokenized Securities Settlement System Using Ripple-Based Technology
The European Central Bank (ECB) launched its new tokenized securities settlement system, Pontes, on September 21. The platform enables transactions recorded on private distributed ledgers to settle in central bank money via the Eurosystem’s TARGET Services. Axiology is one of four DLT operators connected at launch and uses a permissioned infrastructure built from XRP Ledger (XRPL) open-source code, though it does not use public XRP for settlement. Pontes aims to address challenges in Europe's tokenized asset market by anchoring cash settlements in central bank money rather than private alternatives like stablecoins. The ECB plans to expand the system’s functionality and operating hours toward a 24/7 service by mid-2028, with initial operations running between 8 AM and 4 PM CET on TARGET business days. The ECB also announced it will invest in highly rated tokenized securities that may settle through Pontes. While Axiology’s use of XRP Ledger technology is notable for Ripple observers, the system does not involve public XRP tokens or create direct demand for them.
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Topics: central_bank DLT settlement_system tokenized_securities XRP_Ledger