Key facts
- The European Central Bank's wholesale digital settlement bridge, Pontes, launched on September 21.
- Pontes connects market DLT platforms to the Eurosystem's TARGET payment rails.
- Tokenized securities can settle cash legs in real central-bank money via Pontes.
- Axiology, a Lithuanian DLT firm, uses XRP Ledger technology within its Pontes settlement system.
- The ECB confirmed Axiology's use of XRP Ledger technology for the asset leg of settlements.
- Cash settlements occur in euro central bank money, not public XRP.
The European Central Bank's wholesale digital settlement bridge, Pontes, officially launched on Monday, September 21, with ECB President Christine Lagarde confirming the event. The platform aims to connect market DLT platforms to the Eurosystem's existing TARGET payment rails, enabling tokenized securities to settle cash legs in real central-bank money. Settlement occurs through a dual model, either via cash tokens on a Eurosystem DLT or by triggering T2 real-time gross settlement, a process referred to as DvP via Hash-Link. Four market operators are connected on day one: Clearstream, SWIAT, Cashlink, and Axiology. Axiology, a Lithuanian DLT firm founded by former Bank of Lithuania board member Marius Jurgilas, utilizes infrastructure derived from XRP Ledger technology for its settlement system. While this does not involve settling in public XRP, as cash clears in euro central bank money, Axiology's use of an XRPL-derived stack for the asset leg has drawn attention from XRP investors. This development aligns with ECB board member Isabel Schnabel's recent comments on the increasing importance of on-chain central-bank money for euro sovereignty. The Pontes system currently operates from 09:00 to 16:00 CET on TARGET business days, with plans to extend hours and enable 24/7 multi-currency settlement by mid-2028. Launch fees are set at EUR 2,500 per participant and EUR 15,000 per operator, with no initial per-trade charge. The context for XRP investors continues to build, with Ripple holding a MiCA passport across the EEA and recent successful cross-border tokenized treasury settlements on XRPL involving JPMorgan, Ondo, and Ripple. XRPL's Real-World Asset (RWA) holdings are estimated near $4 billion, and lending amendments are live on the protocol. However, analysts note that utility on XRPL-derived rails does not automatically translate to demand for the public XRP token, as institutions can adopt the technology without purchasing XRP, exemplified by Axiology's role in Pontes.