The ECB Embraces Blockchain To Modernize Its Payments

The European Central Bank is initiating a major technological shift. The Governing Council has just approved two large-scale projects aimed at integrating blockchain technology into the euro transaction settlement system. A strategic advancement marking a turning point in the modernization of the European Union’s financial infrastructures.

The ECB launches its blockchain offensive with the Pontes and Appia projects

On July 1, 2025, the European Central Bank announced that it had approved two series of strategic works to integrate distributed ledger technology (DLT) into payment settlement.

These initiatives aim to connect the current Eurosystem infrastructures to Web3 innovations while maintaining central control over the currency.

The first project, named “Pontes”, will be launched in pilot phase by the third quarter of 2026. It will connect DLT platforms (such as those used in decentralized finance or asset tokenization) to TARGET services, which currently handle interbank and securities settlements in Europe. The goal: not to let these platforms develop in silos, but to integrate them into the European ecosystem.

In the longer term, the “Appia” project will explore ways to make this technology compatible with global cross-border flows, potentially opening up to other currencies and financial infrastructures. It is a cautious but strategic approach, where Europe seeks not to repeat past mistakes concerning digital technology.

This announcement follows a phase of testing conducted between May and November 2024, the report published Tuesday highlighting the benefits of DLT: cost reduction, limitation of settlement risks, and increased efficiency in fund transfers.

Strategic response to the hegemony of American stablecoins?

Although this direction seems primarily technocratic, it is actually part of a global monetary battle.

While the United States moves rapidly on stablecoin regulation (with the support of Congress and the FED), the Bank of France issues multiple warnings.

The risk? Privatization of money by American giants like Circle (USDC) or Tether (USDT), which together represent more than $215 billion.

In this context, the ECB’s choice to bet on a public DLT-compatible infrastructure can be seen as an indirect counterattack. Rather than blocking or banning stablecoins, Europe seeks to offer a technological and regulatory alternative, through the digital euro and controlled integration of blockchain in its settlement processes.

This would allow Europe to maintain its monetary autonomy while equipping itself with competitive tools against the programmable, instantaneous finance developing across the Atlantic. And this choice is crucial: according to some studies, 66% of card payments in the eurozone now depend on non-European infrastructures.

Faced with a global finance in full mutation, the ECB is finally taking the blockchain turn. “Pontes” and “Appia” are not merely technical projects: they embody a strategic vision to prevent Europe from becoming a mere spectator in the crypto revolution. The question remains whether this ambition will convince the markets… before stablecoins take over.