Pontes

Pontes is the Eurosystem’s distributed ledger technology (DLT) solution that links market DLT platforms and TARGET Services to settle DLT-based wholesale transactions in central bank money. It builds on the successful results of the exploratory work on new technologies for wholesale central bank money settlement.

Pontes is part of a single Eurosystem programme that seeks to leverage DLT and tokenisation for Europe’s wholesale financial market. 

The initial launch of Pontes is planned for the third quarter of 2026, with subsequent further improvements to be introduced step by step.

Focus Session: Advancing TARGET Services with DLT transactions in central bank money – presentation on Pontes Pontes documents and links for professional use

It will include:

1. A single Eurosystem solution. A consolidated offering that combines the strengths of the three interoperability solutions previously explored.
2. A dual settlement model. Market participants can settle transactions on the Eurosystem DLT platform with cash tokens, or in T2, the Eurosystem’s real-time gross settlement (RTGS) system.
3. Settlement finality in T2. Final settlement in central bank money for the cash leg is achieved once the corresponding transaction is completed in T2, ensuring legal certainty and robustness.
4. A reliable interoperability mechanism. Delivery versus payment (DvP) and other transactions requiring all-or-none settlement are enabled via the Hash-Link protocol, ensuring secure and synchronised settlement across platforms.
5. Enhanced automation. Pontes supports end-to-end processing and seamless interaction with T2, improving operational efficiency and reducing the need for manual intervention.

The following entities are eligible for the initial launch:

Eligible market participants:

• Any entity with access to T2 (TARGET), within the meaning of Article 4 of Annex 1, Part I of the TARGET Guideline, as amended from time to time.

Eligible market DLT operators:

• Central securities depositories (CSDs) authorised under the CSD Regulation including T2S CSDs subject to a derogation of the contractual and regulatory framework of T2S (i.e. the T2S Framework Agreement);
• Operators of a DLT settlement system (DSS) or a DLT trading and settlement system (DTSS), as authorised under the DLT Pilot Regime Regulation;
• Operators of a payment system established in the EU or the European Economic Area and subject to oversight by a competent authority;
• Central counterparties (CCPs) authorised under the European Market Infrastructure Regulation (EMIR);
• Credit institutions, investment firms, market operators and other licensed financial institutions authorised under the Capital Requirements Directive (CRD), the Markets in Financial Instruments Directive (MiFID II) and/or other relevant national legal frameworks in the European Economic Area and that (i) are subject to specific financial market infrastructure supervision or oversight by a competent authority or (ii) have undergone a case-by-case assessment to ensure appropriate risk management conducted by the applicant’s national central bank based on agreed Eurosystem criteria.

Additional information on the eligibility criteria for participants and assets in Pontes can be found in the material from our Focus Session, as well as in the material discussed in the Pontes market contact group.