ECB to explore DLT for payment settlement, aiming for efficiency, cost reduction, and risk mitigation.

From Yahoo Finance: 2025-07-01 18:13:00

The ECB Governing Council approves research using central bank money for DLT transactions to enhance payment system efficiency. Short term project “Pontes” links DLT with Eurosystem TARGET services, launching a pilot in Q3 2026. Long term solution “Appia” will support global operations and analyze DLT solutions for efficiency.

Eurosystem commits to supporting innovation while maintaining financial market infrastructure safety and efficiency. ECB explores DLT technology for payment settlement, following global central banks’ interest. Exploratory work conducted from May to November 2024 shows DLT benefits like cost reduction and mitigating credit and settlement risks.

ECB aims to finish digital euro preparation phase by October.

Read more: EU Central Bank Commits to Distributed Ledger Technology Settlement Work