ECB Launches Pontes for Tokenized Settlements With XRP Ledger Tech Via Axiology
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Key Takeaways
The European Central Bank launched Pontes on Sept. 21, allowing tokenized securities transactions to settle in central bank money through the Eurosystem.
Axiology is one of only four DLT operators connected at launch, alongside Cashlink, Clearstream and SWIAT.
Axiology uses a private, permissioned system built from the open-source XRP Ledger code, but Pontes does not use public XRP for settlement.
The European Central Bank has switched on on Pontes, bringing tokenized securities closer to Europe’s core financial infrastructure, with technology derived from the XRP Ledger (XRPL) sitting inside one of the four platforms connected at launch.
Pontes allows transactions recorded on private distributed ledgers to settle using central bank money through the Eurosystem’s TARGET Services. The ECB said the system went live Monday with 13 market participants, including Deutsche Bank, Santander, Société Générale, and the European Investment Bank.
Axiology, Cashlink, Clearstream, and SWIAT are the first four DLT operators.
For XRP followers, Axiology is an interesting name on that list.
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An ECB report covering its earlier DLT experiments explicitly describes the Axiology DLT Trading and Settlement System as “a private, permissioned infrastructure built using the open-source code of the XRP Ledger.”
Think of the setup as three separate layers.
A tokenized bond or other security can exist and trade on Axiology’s private ledger. Axiology then connects to Pontes, which links participating DLT platforms with the Eurosystem. The cash side of the transaction can then settle in central bank euros through TARGET Services.
Axiology itself says it is one of four DLT operators registered for Pontes’ initial launch.
The company is not running the public XRP Ledger. Its system uses XRPL’s open-source technology as its foundation while operating independently with permissioned participants such as regulated banks and brokers.
XRP Ledger code powers central banking debut as ECB launches Pontes settlement system. | Source: Axiology
The ECB says Axiology can combine accounting, trading, and settlement within a single infrastructure and support instant delivery-versus-payment, in which the asset and payment are exchanged simultaneously.
Pontes Brings Central Bank Money Onchain
Pontes tackles a problem facing Europe’s growing tokenized asset market: a security may exist on a blockchain, but institutions still need a trusted way to settle the cash side.
The ECB wants that settlement anchor to remain central bank money rather than forcing institutions to depend on stablecoins or other private money.
“Pontes brings the stability and trust of central bank money to the European tokenized finance ecosystem,” ECB Executive Board member Piero Cipollone said.
The service initially operates between 8 a.m. and 4 p.m. CET on TARGET business days, according to Reuters. The Eurosystem plans to extend operating hours and add functionality before moving toward a 24/7 service by mid-2028.
The ECB is also putting its own money into the experiment. It announced Monday that it will prepare to invest a small portion of its own funds in highly rated, euro-denominated tokenized securities, with those purchases eventually settling through Pontes.
Does Pontes Create XRP Demand?
This is where the XRP angle needs to be limited.
The ECB has not adopted XRP, and Pontes transactions are not settled using XRP.
Axiology borrowed from the XRP Ledger’s open-source architecture to build its own permissioned system. The cash leg remains denominated in euros and settles in central bank money.
There is therefore no direct mechanism in the announced setup requiring banks using Pontes to purchase XRP.
Still, Axiology gives XRPL technology a notable institutional reference point. An infrastructure derived from XRP Ledger code now sits among just four DLT platforms connected to the ECB’s new settlement system.
And Pontes is no longer simply an experiment. The ECB launched it as an operational service and expects more banks and DLT operators to connect over time.
For XRP, the development is less about token demand today and more about something narrower: XRPL-derived technology has made its way into infrastructure connected directly to Europe’s central bank settlement system.
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Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.
Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.
