ECB Launches Pontes for Blockchain Settlement in Central Bank Money

The European Central Bank (ECB) has launched a new initiative named Pontes, designed to facilitate the settlement of wholesale blockchain-based transactions using central bank money. According to Crypto.news, this move comes as the ECB also prepares to invest a portion of its €23 billion own funds portfolio into digital securities. The launch of Pontes highlights the ECB's engagement with distributed ledger technology (DLT) in financial market infrastructure.

The development of Pontes by the ECB indicates a growing interest among central banks in exploring the potential of blockchain technology for wholesale financial transactions. Settling transactions in central bank money on a blockchain could offer benefits such as increased efficiency and reduced settlement risk. For readers following broader crypto market news , this initiative represents a significant step by a major financial institution into the practical application of DLT.

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