European Central Bank to Launch Blockchain Settlement Pilot by 2026

According to BlockBeats, the European Central Bank (ECB) plans to initiate a blockchain settlement pilot named 'Pontes' by the end of 2026. This initiative aims to integrate distributed ledger technology (DLT) platforms with the eurozone's core payment systems. The ECB approved a dual-track plan on Tuesday to settle DLT transactions using central bank money, potentially modernizing the European financial system. The first track, 'Pontes,' will focus on short-term solutions by connecting blockchain-based DLT platforms with the euro system's 'TARGET' financial services system, which facilitates payments and securities circulation within the eurozone. The pilot is expected to commence by the third quarter of 2026. The ECB stated that the pilot will utilize findings from its 2024 DLT exploratory experiments, which included over 50 experiments and 64 participating institutions, to test a unified settlement system using central bank money. "This decision aligns with the euro system's commitment to supporting innovation while ensuring the safety and efficiency of financial market infrastructure."