The European Central Bank (ECB) plans to invest a small portion of its reserves in tokenized securities, giving the central bank direct exposure to blockchain-based financial markets.
The purchase would be settled through Pontes, the new Eurosystem platform, which allows wholesale transactions to settle in central bank money. The platform bridges the ECB's payment system to blockchain-based financial markets. The plan to invest in tokenized securities and Pontes reflects a broader bid by central banks in the EU to adapt to the increasing use of blockchain in finance.
The ECB intends to test the technology as an investor, from buying tokenized bonds to settlement and portfolio management. "Pontes brings the stability and trust of central bank money to the European tokenized finance ecosystem," said Piero Cipollone, member of the ECB's executive board. "It will give an important advantage to help it scale."
