The European Central Bank said stablecoins and tokenized deposits need a link to central bank money if Europe wants its tokenized financial markets to grow safely. In the ECB’s view, digital markets cannot scale properly without a trusted public settlement anchor operating on digital platforms.
Speaking in Brussels, ECB Executive Board member Piero Cipollone said tokenized markets are expanding. Since 2021, about €4 billion in digital bonds have been issued. These instruments use distributed ledger technology, which allows issuance, trading, settlement, and custody to happen within one digital system.
Tokenization is growing, but settlement infrastructure remains fragmented
The ECB said tokenization can turn traditional assets into blockchain-based tokens, making settlement faster, payments more automated, and transactions more transparent. It also sees the model as a way to reduce friction and improve efficiency. Still, officials said the current setup has unresolved weaknesses, including fragmented platforms and the absence of a trusted on-chain settlement asset.
That is why the ECB argues Europe’s tokenized financial markets will not expand at scale without a public settlement anchor. Its preferred approach is to bring central bank money onto digital platforms so it can support settlement for tokenized assets and related forms of digital money.
Eurosystem targets Q3 2026 launch for Pontes
To address that gap, the Eurosystem is preparing a new initiative called Pontes, with a planned launch in the third quarter of 2026. The system is designed to connect blockchain platforms with central bank money, allowing tokenized assets to settle within a more secure framework.
According to the report, the setup could also help stablecoin interoperability and strengthen crypto-linked financial infrastructure. Industry groups and banks have been asking for clearer rules around tokenized money and stablecoins. While the EU’s Markets in Crypto-Assets regulation, or MiCA, already provides a legal basis for digital assets, market participants say more work is still needed to support this type of infrastructure.
Dollar-linked stablecoins dominate a $320 billion market
Europe is also facing competitive pressure from abroad. The report says U.S.-linked stablecoins currently dominate the global market, and some ECB officials are concerned that Europe’s monetary autonomy could be weakened if that trend continues. The stablecoin market is valued at about $320 billion, with USDT holding the largest share.
The ECB’s position is clear: tokenized finance can grow, but stablecoins and tokenized deposits need a trusted central bank money anchor if Europe wants that growth to be both larger in scale and safer in operation.