Tokenized deposits and stablecoins must be settled in tokenized central bank money for Europe’s financial markets to scale, ECB Executive Board member Piero Cipollone said Monday.
Cipollone highlighted Pontes, the Eurosystem’s DLT-based settlement platform, set for launch in Q3 2026. It will connect private market platforms with TARGET Services, enabling final settlement in central bank money.
"Without tokenised central bank money, a seller may receive payment in an asset they are not comfortable holding," Cipollone warned during a speech in Brussels. He stressed that assets exposed to credit or price risk hinder scalability.
The Pontes initiative supports the broader Appia roadmap, unveiled March 11, which aims to establish a unified European tokenized finance ecosystem by 2028. A key component is an interoperability standard allowing tokenized assets to move across DLT networks.
Cipollone called for stronger public-private collaboration and a comprehensive legal framework. While he welcomed the EU Commission’s proposal to extend the DLT Pilot Regime, he cautioned against building advanced infrastructure on fragmented regulations.
He emphasized that without harmonized rules, Europe risks missing the full benefits of tokenization. Market players including banks, custodians, and tech providers are urged to engage with the Appia consultation process.
The remarks follow Circle’s March 20 feedback urging EU lawmakers to expand the DLT regime and grant e-money token cash account access to licensed crypto firms.