The European Central Bank has agreed to a dual-track strategy for integrating distributeed ledger technology with Target settlement services in the wholesale market.
The project, which is the outcome of a series of exploratory works, will enable the settling of distributed ledger technology (DLT) transactions using central bank money.
Conducted between May and November 2024, the exploratory work involved 64 participants and the running of over 50 trials and experiments
While the CB is still inviting requests for further DLT-related trials and experiments, the immediate plans call for a two-track approach: the first track 'Pontes' provides a short-term offering to the market - including a pilot phase - and the second track 'Appia' focuses on a potential long-term solution.
The Eurosystem plans to launch a pilot for Pontes by the end of the third quarter of 2026 that will explore the feasibility of further enhancements in line with the Target Services operational, legal and technical standards.
Appia focuses on a long-term approach for an integrated ecosystem in Europe that will also interconnect with other financial market infrastuctures at the global level.
To maintain continuous dialogue with the market, the Eurosystem says it will establish dedicated market contact groups for both Pontes and Appia. A call for expressions of interest in participating in the Pontes contact group will be published soon.