ECB Approves Research for DLT Transactions Settlement by 2026
The European Central Bank (ECB) Governing Council approved research to utilize central bank money for settling distributed ledger technology (DLT) transactions, aiming to enhance payment system efficiency.
- Short-term initiative "Pontes" will connect DLT platforms with Eurosystem TARGET services, launching a pilot in Q3 2026.
- Long-term project "Appia" will support global operations and assess DLT solutions.
- The ECB's decision aligns with its commitment to innovation while ensuring safety and efficiency in financial markets.
- Research conducted from May to November 2024 explored DLT for wholesale central bank money settlement.
- A report published on Tuesday highlighted DLT's potential to reduce costs and mitigate credit and settlement risks.