The European Central Bank (ECB) has approved a two-track plan to improve Ledger Technology (DLT) distribution transactions with central bank money, which can provide a way to create a modern European financial system.
The first track, called Pontes, will focus on a short-term solution by linking Blockchain -based platforms In target services, a suite of financial services developed and operated by the eurosystem designed to facilitate the flow of payments and security within the eurozone.
It is expected to launch a pilot for Pontes at the end of the third quarter of 2026, the ECB Says Tuesday. This pilot will use insights from ECB DLT tests in 2024, involved in more than 50 experiments and 64 participants, to test a single system of regulating with the central bank money.
“The decision is in accordance with the promise of the eurosystem in support of the change without compromising the safety and efficiency of the financial market infrastructure,” the ECB wrote.
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The second track takes a long -term approach
The second track, called Appia, takes a longer approach, aimed at developing an “integrated ecosystem in Europe that also facilitates safe and efficient operation at a global level.”
Appia will find that the ECB will continue to study DLT applications with wholesale central banks while working closely with public and private partners.
The eurosystem will also build contact groups on the market for both Pontes and Appia to maintain dialogue with industry stakeholders and comment on feedback. A call for expressions of interest to join the Pontes Group will be published as soon as possible.
The plan will come as central banks around the world Explore how blockchains can be streamlined while maintaining control over currency flows.
In 2023, an experiment with the Bank of England, conducted by the Bis London Innovation Hub, successfully tested using DLT to run large interbank transactions. It showed a prototype that could speed up and lower the costs of real-time gross settlements (RTGs) systems by linking them to other financial infrastructure and ledgers.
The cointelegraph reached the ECB to comment but did not receive a response through publication.
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DLT trials show demand for money to central bank
The ECB also Na -Published A report detailing the results of DLT’s recent exploratory work. The report confirmed strong demand in the market for the regulation of tokenized central bank currency assets, with 1.6 billion euros ($ 1.88 billion) fixed during trials involving 64 participants across Europe.
The findings show DLT can reduce “fragmentation, complexity and technological futility” in capital markets by enabling the atomic, programmed regulating.
However, it taught the need for standardization, joint legal frameworks, and “a link interoperability with target services as soon as possible.”
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