The European Central Bank has moved to the new stage to develop DLT -based swap systems

The European Central Bank (ECB) Management Council officially approved two new project sets, including the use of the Central Bank’s money in distributed book technology (DLT) based transactions. This step is considered as part of the importance of ECB in payment and clearing systems to digitalization.

It was emphasized that these initiatives were in accordance with the commitment to support innovation by maintaining security and efficiency in the European financial market infrastructure.

“Pontes” and “Appia”: two different time periods, one purpose

Two strategic approaches described by ECB are as follows:

PONTES: It will integrate DLT platforms with Target services, the central payment system in Europe. The first pilot application of this project, which aims to facilitate cash and securities flow, will begin in the third quarter of 2026.

Appia (Long Term): It aims to create a DLT analysis infrastructure that is wider and suitable for global operations. This solution aims to establish a future -oriented structure compatible with central banks outside Europe.

DLT’s bringing: efficiency, low risk, low cost

ECB carried out experimental studies on the use of the wholesale Central Bank money in the DLT environment during the May-November 2024 period. The final report of this study was published on Tuesday. According to the report, DLT offers great advantages in these areas:

Decrease in transaction costs

Reduction of swap and credit risks

Real -time reconciliation opportunities

Data transparency and traceability

These developments stand out as an important part of ECB’s goal of making the European financial system more digital, transparent and inclusive.