ECB Approves Pontes, Appia to Settle DLT in Central Bank Money

The European Central Bank (ECB) has approved a two-track plan to settle distributed ledger technology (DLT) transactions using central bank money, which could pave the way to modernizing Europe’s financial system.

The first track, dubbed Pontes, will focus on a short-term solution by linking blockchain-based DLT platforms with TARGET Services, a suite of financial services developed and operated by the Eurosystem designed to facilitate the flow of payments and securities within the eurozone.

A pilot for Pontes is expected to launch by the end of the…