These assets are built using distributed ledger technology, allowing issuance, trading, settlement, and custody within one digital system.
Meanwhile, tokenization turns traditional assets into blockchain tokens, allowing faster settlement, automated payments, and more transparency. Thus, the ECB believes this tokenized model can reduce friction and make activity more efficient.
However, officials said the system still has problems, like separate platforms and the lack of a trusted on-chain settlement asset.
Central Bank Money as the Foundation for Digital Markets
Therefore, the ECB highlighted that tokenized financial markets in Europe won’t scale without a public settlement anchor, meaning central bank money issued on a digital platform.
To address this, the Eurosystem is preparing a new initiative called “Pontes,” expected to launch in the third quarter of 2026. The system will connect blockchain platforms with central bank money, enabling tokenized assets to settle securely.
This could also support stablecoin interoperability and improve crypto-linked financial infrastructure.
Why Regulators Are Pushing for Clear Rules
Industry groups and banks have also been calling for clearer rules around tokenized money and stablecoins. Europe’s Markets in Crypto‑Assets Regulation (MiCA) already provides a legal base for digital assets, but experts say more work is needed to support this new infrastructure.
However, Europe is also under pressure to keep up with global trends. U.S.‑linked stablecoins dominate the global market, and some ECB officials worry this could weaken Europe’s monetary autonomy if left unchecked.
The stablecoin market currently has a total value of $320 billion, with USDT holding the largest share.
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