ECB launches Pontes for central bank settlement of blockchain trades

The European Central Bank has launched Pontes, a service that lets blockchain-based financial transactions be settled in central bank money, Reuters reported. The service allows banks and investors to settle blockchain trades in ECB-backed euros instead of private forms of money such as stablecoins. Deutsche Bank, Santander and Clearstream are among the initial users. The ECB said it plans to invest part of its own reserves in euro-denominated tokenized securities, and Pontes will also be used in that process.