ECB plans to launch blockchain euro settlement pilot in 2026

Odaily Planet Daily News The European Central Bank (ECB) will launch a blockchain settlement pilot by the end of 2026 through a new program called "Pontes", aiming 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 use central bank currency to settle DLT transactions, 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, connecting the blockchain-based DLT platform with the "TARGET" financial services system developed and operated by the Eurosystem (the system aims to promote payments and securities circulation in the eurozone), and is expected to launch a pilot at the end of the third quarter of 2026. 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 currency. "This decision is in line with the Eurosystem's commitment to supporting innovation while ensuring the security and efficiency of financial market infrastructure." (Cointelegraph)