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ECB opens blockchain link to financial markets
Reuters • • business
Key Points:
- The European Central Bank (ECB) launched Pontes, a new service enabling banks and investors to settle blockchain-based transactions using euros backed by the ECB, rather than private stablecoins.
- Pontes will initially operate during business hours (8 a.m. to 4 p.m. CET) and aims to improve transaction speed and efficiency by automating multiple steps in an asset's lifecycle.
- The ECB announced it will invest a small portion of its €23 billion funds in highly rated, euro-denominated blockchain-based securities issued by public institutions.
- This initiative is part of a broader trend among central banks, including the Swiss National Bank and Bank of England, to integrate blockchain technology into financial markets.
- The ECB is also developing a digital euro for consumers, targeting a 2029 launch to reduce reliance on US credit cards within the eurozone.
