The ECB wants Tokenize asset markets in the EU to be settled in “central bank money,” in order to avoid reliance on private stablecoins and protect monetary sovereignty.
Tokenize and stablecoins are moving from experimentation to mass adoption, but blockchain infrastructure in Europe remains Shard and lacks a reliable on-chain asset for payments. Therefore, the ECB proposes a roadmap to connect existing “railways” and move towards a unified Tokenize market framework in the coming years.
- The ECB highlighted two major challenges: Shard infrastructure and a lack of reliable on-chain assets for payments.
- Pontes is designed as a "bridge" between private blockchains, expected to be operational in Q3 2026, as part of the Appia roadmap.
- The ECB is promoting on-chain payments using central bank money to reduce currency sovereignty and liquidation liquidity risks.
The ECB identifies two major bottlenecks to Tokenize in the EU.
The ECB stated that Tokenize in the EU is being hampered by platform Shard and the lack of a single, trusted on-chain asset to use as a payment instrument.
According to the ECB, Tokenize markets need a payment mechanism that is both secure and highly liquidation . However, the current ecosystem consists of many separate blockchain systems that are difficult to interoperate, making cross-platform payments and reconciliation inefficient.
The ECB describes these two core challenges in its official document: platform Shard and a lack of reliable on-chain assets for payments .
The bank's Token Issuance platform still runs on separate blockchains.
The majority of banks issuing Tokenize products in the EU are operating their own blockchain “railways” using Distributed Ledger Technology, leading to a Chia market.
Private blockchain models allow organizations to easily control compliance and access, but create separate liquidation pools. When each entity uses a different system, scaling the market and establishing a common payment standard becomes difficult.
Private stablecoins could become the default payment asset, creating risks to monetary sovereignty.
The ECB is concerned that public platforms using private stablecoins to settle Tokenize transactions could lead to USD Peg stablecoins becoming the de facto standard of payment in the EU.
Public platforms like Robinhood and Kraken (xStocks) primarily settle Tokenize transactions using USDC or euro-denominated stablecoins issued by privately held organizations, such as Circle.
The original text stated that the stablecoin market has exceeded $300 billion and continues to grow. In this context, the ECB argued that reliance on private issuers could undermine “monetary sovereignty” and increase counterparty liquidation risks in the payment process.
Central bank money is the safest and most liquidation payment asset. It carries no credit risk or liquidation risk, thus acting as a monetary Peg for the financial system.
– ECB, quoted in its update on the Tokenize market.
ECB promotes on-chain payments using central bank money.
The ECB wants Tokenize markets in the region to only accept payments in approved central bank currencies, in order to maintain the "monetary Peg " for the system.
This approach aims to bring Tokenize asset payments back to a low-risk standard, rather than relying on private stablecoins. As the ECB argues in the original text, central bank money minimizes credit risk and liquidation risk in the settlement process.
Pontes will act as a "bridge" connecting private blockchains for the Tokenize market.
Pontes is the ECB's medium-term solution to connect the Shard , private blockchain systems handling Tokenize assets in the EU.
The ECB has proposed a roadmap that begins with building bridges between existing blockchain "railways," called Pontes. The goal is to reduce friction in Chia markets, paving the way for the long-term formation of a unified payment and operational mechanism.
According to the original plan, Pontes was scheduled to begin operations in Q3 2026 and was part of the Appia roadmap.
The Appia roadmap aims for the full implementation of the EU's Tokenize market framework by 2028.
Appia is the ECB's broader roadmap, of which Pontes is a component, aiming for the full rollout of the EU's Tokenize market framework by 2028.
The ECB links Pontes to the overall Appia program, outlined on the Appia roadmap page. According to the original content, the goal is to build a scalable Tokenize market mechanism that reduces Shard and meets the requirements for central bank payments.
The Tokenize Capital market in the EU has grown since 2021.
The ECB said the region's Tokenize Capital markets have seen nearly €4 billion worth of fixed-income instruments issued on blockchain since 2021.
According to Piero Cipollone, a member of the ECB's Executive Board, this growth reflects the emerging real demand in the Tokenize asset sector, particularly for fixed-income products. The figure of "almost 4 billion euros" in the original text is used to emphasize that Tokenize in the EU has moved beyond the conceptual stage and is beginning to progress towards large-scale implementation.
As stablecoins and Tokenize approach mass adoption, the EU is unwilling to lose its market advantage and monetary sovereignty to the US, and is therefore accelerating plans like Pontes and Appia.
The ECB is also pushing forward with its digital euro project, aiming for a 2029 deadline.
The updated information comes as the ECB continues to push forward with its digital euro project, setting a timeline of 2029.
The original text indicates that the ECB is pursuing a digital euro in parallel with efforts for a Tokenize market. Overall, if the EU wants an on-chain payment ecosystem based on central bank money, researching and implementing a digital euro is XEM as part of the long-term picture.
Frequently Asked Questions
What are pontoons and what are they used for?
Pontes is a "bridge" proposed by the ECB to connect the Shard , private blockchains handling Tokenize assets in the EU, enabling existing systems to interact more effectively in payments and operations.
Why does the ECB not want the Tokenize market to rely on private stablecoins?
The ECB argues that reliance on private stablecoins poses risks to monetary sovereignty and counterparty liquidation risks in payments. The ECB emphasizes that central bank money is the safest and most liquidation payment asset.
When is Pontes expected to become operational?
According to the original plan, Pontes was expected to begin operations in the third quarter of 2026.
What are Appia's goals and timeline?
According to the original text, Appia is a broader roadmap for the full implementation of the EU's Tokenize market framework by 2028, with Pontes being a key step in addressing Shard .
What is the size of the EU's Tokenize Capital market as stated by the ECB?
According to Piero Cipollone (ECB), the region has seen nearly €4 billion worth of fixed-income instruments issued on the blockchain since 2021.
