The digital euro made its debut in wholesale financial markets on Monday as the European Central Bank launched a system for tokenised payments between banks. The ECB-operated platform Pontes allows banks to settle transactions on privately run decentralised ledgers using central bank money, starting at 9:15am. Pontes is part of the ECB’s push to modernise the Eurozone’s payments infrastructure, with a retail digital euro also under development.

While the retail version hinges on EU law changes, the wholesale digital euro can launch under existing rules. The ECB argues both are needed to safeguard monetary sovereignty amid rising use of US-dollar stablecoins. Pontes links private sector distributed ledger operators with lenders across the 21-country Eurozone via the ECB’s Target2 system.

The ECB started work on the wholesale digital euro in 2024. BNP’s chief economist Isabelle Mateos y Lago said Europe 'urgently needs' a wholesale digital currency. ECB executive Piero Cipollone stated Pontes brings 'stability and trust of central bank money to the European tokenised finance ecosystem'.

The platform began with 13 lenders including Deutsche Bank, Santander, and Société Générale, and four distributed-ledger operators such as Clearstream and Axiology. Trading hours are initially 8am to 4pm CET, with 24/7 operation planned by 2028. The ECB will invest a small portion of its funds in tokenised securities to gain practical experience.

A retail digital euro for households and merchants is targeted for 2029, with beta testing in 2027. Legal changes for the retail version are under discussion, with political agreement expected by year-end.