ECB’s Dual-Track Distributed Ledger Technology Settlement Strategy: Pontes & Appia
SDG 9: Industry, Innovation and Infrastructure
Institutions: Reserve Bank of India; Ministry of Finance
The European Central Bank’s Governing Council has approved a dual-track strategy enabling settlement of distributed ledger technology (DLT) transactions using central bank money.
The short-term track, Pontes, will pilot a linkage between DLT platforms and TARGET Services, enabling settlement in central bank money. The pilot, incorporating components tested during the Eurosystem’s 2024 exploratory work, is scheduled to launch by the end of Q3 2026. The Eurosystem will also consider additional DLT-related trials in the interim.
The long-term track, Appia, envisions an innovative, integrated financial ecosystem shaped to function safely and efficiently both in Europe and globally. This includes continued analysis of DLT solutions and collaboration with public and private stakeholders.
Dedicated market contact groups will be established for both tracks, with expressions of interest for the Pontes group to be invited soon. The strategy builds upon the exploratory 2024 DLT trials involving 64 participants and over 50 experiments.
Relevant question for policy stakeholders: How can India’s financial infrastructure adapt to emulate the ECB’s dual-track DLT settlement model in enhancing settlement efficiency and security—especially exploring a phased rollout of pilot systems (akin to Pontes) followed by long-term integration (akin to Appia)?
Follow the full news here:
https://www.ecb.europa.eu//press/pr/date/2025/html/ecb.pr250701~f4a98dd9dc.en.html