The European Central Bank is embarking on a significant technological transformation. The Governing Council has recently approved two extensive projects aimed at integrating blockchain technology into the euro transaction settlement system, marking a strategic milestone in the modernization of the European Union’s financial infrastructure. The ECB launches its blockchain initiative with the Pontes and Appia projects On July 1, 2025, the European Central Bank announced approval of two strategic initiatives to incorporate distributed ledger technology (DLT) into payment settlement systems. These projects seek to link existing Eurosystem infrastructures with Web3 innovations, while ensuring central authority over the currency is preserved. The first initiative, called “Pontes, ” is set to enter a pilot phase by the third quarter of 2026. It aims to connect DLT platforms—examples include those used in decentralized finance or asset tokenization—to TARGET services, which currently manage interbank and securities settlements across Europe. The objective is to avoid these blockchain platforms developing in isolation and instead integrate them within the broader European financial ecosystem. Looking further ahead, the “Appia” project will investigate ways to extend this technology’s compatibility to global cross-border transactions, potentially encompassing other currencies and financial systems.

This measured, strategic approach reflects Europe’s intent to avoid repeating past errors regarding digital technologies. This announcement follows a testing phase conducted between May and November 2024, with a report released Tuesday emphasizing the benefits of DLT: reducing costs, lowering settlement risks, and improving the efficiency of fund transfers. A strategic response to the dominance of American stablecoins? While this move may seem primarily technical, it actually forms part of a broader global monetary contest. As the United States advances promptly with stablecoin regulation—backed by Congress and the Federal Reserve—the Bank of France has issued multiple warnings. The primary concern is the privatization of money by American firms such as Circle (USDC) and Tether (USDT), which together account for over $215 billion. Within this context, the ECB’s decision to develop a public, DLT-compatible infrastructure can be viewed as an indirect countermeasure. Rather than prohibiting or restricting stablecoins, Europe aims to provide a technological and regulatory alternative through the digital euro and the controlled integration of blockchain in its settlement mechanisms. This approach would allow Europe to preserve its monetary sovereignty while equipping itself with competitive tools against the programmable, instantaneous financial innovations emerging across the Atlantic. This choice is critical, especially considering studies indicating that 66% of card payments in the eurozone currently rely on non-European infrastructures.