ECB Launches Blockchain Strategy With Pontes Appia Initiatives

The European Central Bank (ECB) has announced a significant initiative to modernize Europe's financial system through the integration of blockchain technology. The ECB's comprehensive blockchain strategy, unveiled on July 1, 2025, includes two major projects: Pontes and Appia. Pontes, a short-term initiative, aims to integrate distributed ledger technology (DLT) platforms with the Eurosystem's TARGET settlement services. The pilot phase for Pontes is scheduled to commence by the end of the third quarter of 2026, with the goal of settling transactions in central bank money. This project will build upon the findings from the Eurosystem's exploratory work on DLT conducted in 2024 and will explore further enhancements in line with TARGET Services' operational, legal, and technical standards. The Eurosystem will also consider requests for additional DLT-related trials and experiments before the launch of the Pontes pilot.

Appia, on the other hand, takes a long-term approach to creating an innovative and integrated financial ecosystem in Europe. This initiative aims to facilitate safe and efficient operations at both the regional and global levels. The Eurosystem will continue to analyze DLT-based solutions and collaborate with public and private stakeholders to ensure the development of a robust and future-ready financial infrastructure. To foster continuous dialogue with the market, the Eurosystem 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.

These initiatives are part of the Eurosystem's ongoing commitment to supporting innovation while maintaining the safety and efficiency of financial market infrastructures. The ECB's Governing Council approved a plan that enables settling DLT transactions using central bank money, following a two-track approach. The first track, Pontes, provides a short-term offering to the market, including a pilot phase, while the second track, Appia, focuses on a potential long-term solution. The decision aligns with the Eurosystem's commitment to innovation without compromising on safety and efficiency.

The ECB's blockchain strategy builds on the exploratory work conducted between May and November 2024, during which 64 participants conducted over 50 trials and experiments. A dedicated report outlining the results of this exploratory work has been published, highlighting the potential of blockchain technology in reshaping Europe's financial system. The ECB's initiatives are expected to deliver on the Eurosystem’s continuing commitment to safe, efficient settlement in central bank money, paving the way for a more modern and integrated financial ecosystem in Europe.

The ECB emphasized that these changes are designed to foster innovation without sacrificing financial stability. If successful, this strategy could encourage other central banks to adopt similar technology, reinforcing Europe’s position as a leader in blockchain integration. With a clear roadmap and commitment to gradual implementation, the ECB aims to reshape how money moves across Europe, while addressing long-standing inefficiencies and environmental concerns in traditional systems.