ECB expands digital euro pilot and activates Pontes tokenised asset system

The European Central Bank approved expansion of its digital euro pilot to include e-commerce merchants and private companies on Friday, Oct. 2, and confirmed the go-live of Pontes, a wholesale settlement system for tokenised assets in central bank money, which launched on Sept. 21.

• ECB issued calls for digital euro pilot participation with Oct. 27 and Nov. 9 deadlines.
• Pontes agreement governing tokenised asset settlement in central bank money approved Aug. 11.
• Visa Europe Payment System designated systemically important under new EU oversight framework.

• 10M respondents to euro banknote design survey, 2.6% of euro area population

The ECB’s Governing Council issued decisions on digital euro project developments, payment systems oversight and monetary policy framework amendments in its Oct. 2 announcements of actions taken beyond interest rate decisions. On Sept. 15, the ECB invited e-commerce and mobile commerce merchants across the euro area to participate in the digital euro pilot, with applications due by Oct. 27. A second call issued Sept. 28 sought private companies and organisations to explore how digital euro infrastructure could support innovation efforts, with a Nov. 9 deadline. The Governing Council had announced on July 30 that the digital euro app would exceed accessibility requirements set in the European Accessibility Act, with usability and accessibility testing scheduled for 2027.

The ECB approved an agreement Aug. 11 governing Pontes, a system enabling wholesale transactions in tokenised assets to be settled in central bank money. The agreement, struck between Eurosystem central banks and solution-providing Eurosystem national central banks, establishes binding legal framework while reflecting the interim nature of the service phase. It includes terms and conditions for market participants and market DLT operators providing contract templates for arrangements between Eurosystem central banks and their counterparties. The Market Infrastructure Board recommended proceeding with the scheduled Pontes initial launch on Sept. 21, which proceeded as planned.

On Aug. 24, the Governing Council designated Visa Europe Payment System as systemically important under Regulation (EU) 2025/1355 on oversight requirements for systemically important payment systems. Decision ECB/2026/22 makes the system subject to Eurosystem oversight with the ECB as lead overseer. The notification went to the German branch of Visa Europe Limited as operator of the euro area payment system.

Digital euro and tokenisation marks ECB shift toward infrastructure modernisation

The parallel expansion of the digital euro pilot and activation of Pontes reflect the ECB’s strategy to modernise payments infrastructure across retail and wholesale channels simultaneously. The digital euro pilot’s expansion from initial testing phases to merchant participation and innovation partnerships signals movement toward commercial viability testing, while Pontes operationalisation establishes the settlement infrastructure for tokenised financial assets denominated in euros.

The accessibility features of the digital euro app exceeding statutory requirements and the scheduling of usability testing in 2027 indicate the ECB is addressing adoption barriers early in the pilot. The dual approach to merchant recruitment, separating e-commerce participation from open innovation exploration, allows the ECB to test both merchant integration and technology platform extensibility in controlled environments before wider rollout.

Pontes’ legal framework distinguishes between binding obligations for the Eurosystem central banks and contract template arrangements for market participants, preserving central bank control over the system while delegating implementation details to individual market relationships. This structure permits rapid iteration on service terms without requiring repeated Governing Council approvals.

MiCAR review response and crypto regulation positioning

On Sept. 7, the Governing Council approved the ESCB’s response to the European Commission’s targeted consultation on the review of MiCAR. The response welcomes assessment of areas where existing rules could be improved to ensure MiCAR remains fit for purpose, accounting for lessons learned from initial implementation, evolving market dynamics and practices in other jurisdictions. The ECB adopted Opinion CON/2026/26 on Aug. 12 at the Polish Parliament’s request regarding introduction of a ban on crypto-asset activities and measures concerning Regulation (EU) 2023/1114.

The ESCB’s measured support for MiCAR review, framed around fitness-for-purpose rather than calls for tightening, suggests the ECB views the regulatory framework as functional despite implementation challenges. The simultaneous adoption of an opinion on crypto-asset activity bans at member state level indicates the ECB distinguishes between EU-level regulation of crypto markets and national-level restrictions on institutional participation in those markets.

Payment system interlinking and TARGET expansion

On Sept. 24, the Governing Council noted progress on interlinking TARGET Instant Payment Settlement (TIPS) with other fast payment systems globally and approved initiation of feasibility assessment for interlinking with Brazil’s Pix instant payment system. The Governing Council also considered a Market Infrastructure Board recommendation on pricing for the TIPS interlinking service, with detailed information to follow as work progresses.

TIPS interlinking with Pix represents the first public signal of cross-border instant payment connectivity between a major advanced economy payment system and a significant emerging market system. Pricing framework development suggests the ECB is structuring interlinking as a service with commercial terms rather than a free infrastructure good, which may constrain adoption among smaller participants.

Monetary policy framework amendments and supervisory delegations

On Sept. 22, the Governing Council adopted amendments to legal acts implementing the Eurosystem monetary policy framework, effective Nov. 30. Guidelines ECB/2026/26 and ECB/2026/27 amend prior guidelines on the implementation of the monetary policy framework and valuation haircuts applied in the framework’s implementation.

Personnel and administrative matters

On Sept. 24, the Governing Council concurred with the Ethics Committee that Isabel Schnabel’s intention to take up the position of Financial Counsellor and Director of the Monetary and Capital Markets Department at the IMF as of Jan. 4, 2027, did not raise conflict of interest concerns and required no cooling-off period.

On Sept. 11, the Governing Council extended the mandates of Christiane Campill and Damir Odak of the Administrative Board of Review for five-year terms until Nov. 30, 2031, and extended Pentti Hakkarainen’s mandate until Jan. 31, 2032. On July 30, the Governing Council approved appointment of Sigríður Dis Guðjónsdóttir, Head of Payments and Resilience at the Central Bank of Iceland, as a non-voting Market Infrastructure Board member from a non-euro area central bank until May 31, 2029.

The BlockWest read. Pontes operationalisation and digital euro merchant pilot expansion occur as traditional payment system operators face designation as systemically important under new oversight regimes. The ECB’s parallel infrastructure investments in tokenised wholesale settlement and retail digital currency suggest institutional demand for both channels exceeds the central bank’s initial projections, compelling rapid advancement in the project timeline and resource allocation to both tracks simultaneously.

The next material deadline is Oct. 27, 2026, for e-commerce merchant applications to the digital euro pilot. The ECB will provide further details on TIPS interlinking service pricing and Pix feasibility assessment progress on its website as work advances, with no announced decision date.

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