The Eurosystem has outlined a long-term strategy to develop tokenised financial markets anchored in central bank money, as debate continues over Europe’s payments sovereignty and the role of global payment networks.
The European Central Bank (ECB) has outlined a strategic roadmap for the development of tokenised financial markets in Europe, setting out how central bank money could continue to underpin financial infrastructure as digital technologies reshape capital markets.
In a press release published on 11 March, the Eurosystem introduced the Appia roadmap, a long-term initiative designed to support the creation of an integrated European ecosystem for tokenised finance.
The programme will explore how distributed ledger technology (DLT) and tokenisation could be incorporated into wholesale financial markets, while maintaining the role of central bank money as the foundation of settlement and monetary stability.
“With Appia, we are building a road from today’s financial system to tomorrow’s tokenised markets, firmly grounded in central bank money,” said Piero Cipollone, member of the ECB’s Executive Board.
Tokenisation refers to the process of representing financial assets as digital tokens recorded on distributed ledger networks. In wholesale markets, the ECB notes that the technology has the potential to streamline multiple stages of the asset lifecycle, including issuance, trading, settlement, and custody.
According to the central bank, bundling these functions onto shared digital infrastructure could improve efficiency while enabling the use of automated smart contracts for financial transactions.
Pontes settlement platform due in 2026
The Appia initiative sits alongside another Eurosystem project known as Pontes, a distributed ledger solution designed to enable settlement in central bank money for DLT-based transactions.
Pontes is expected to launch in the third quarter of 2026 and will provide the settlement layer for tokenised financial transactions conducted on distributed ledger infrastructure.
While Pontes will deliver operational capabilities in the near term, Appia has a broader scope. The roadmap will guide the design of future tokenised financial infrastructure in Europe, with the ECB planning to publish a detailed blueprint for the ecosystem by 2028.
The initiative will also involve collaboration with market participants, public institutions and academic bodies to assess how tokenised markets should be structured and governed.
The work follows exploratory trials conducted by the Eurosystem between May and November 2024, which involved 64 market participants and more than 50 experiments testing potential applications of distributed ledger technology in wholesale financial markets.
The ECB said the initiative aims to support a more integrated and competitive European financial system while safeguarding the role of central bank money in the digital transformation of financial markets. Eurosystem Unveils Appia Roadma…
Infrastructure debate extends beyond tokenisation
The launch of the Appia roadmap comes as policymakers and industry participants across Europe increasingly frame payments and financial infrastructure as a matter of strategic autonomy.
In recent years, European institutions have examined how core financial infrastructure should evolve as digital technologies reshape payments, securities markets and settlement systems.
These discussions have been influenced by wider geopolitical tensions and concerns about resilience, prompting debate over the balance between domestic infrastructure and global payment networks.
Kelly Devine, President of Mastercard Europe, addressed the issue in a recent commentary on Europe’s payments landscape, noting that payments infrastructure has become an increasingly prominent policy topic.
“In recent months, geopolitical instability has led European policymakers, central banks and market participants to increasingly perceive payments as critical infrastructure that should be managed more locally,” Devine said.
“Some are openly advocating for preferential treatment of homegrown, European or national solutions.”
Devine argued that global payment networks already provide infrastructure that supports Europe’s financial system and cross-border commerce. “A European payment network exists today operating for Europe’s benefit,” she said. “That network is Mastercard.”
Public and private infrastructure evolving together
While the ECB’s roadmap focuses primarily on wholesale financial markets and settlement infrastructure, the broader policy discussion reflects ongoing efforts to determine how Europe’s payments ecosystem should develop in the coming years.
For the central bank, the priority remains ensuring the transition toward tokenised financial markets does not weaken the role of central bank money as the anchor of the monetary system.
The Appia roadmap will examine different technical architectures for distributed ledger networks, including whether future financial infrastructure should rely on shared platforms or multiple interconnected systems operating under common standards.
According to the ECB, establishing common standards and governance frameworks will be a key objective of the initiative as it works with the market to design the next generation of financial infrastructure.
The central bank said the project is intended to help ensure that Europe’s financial system remains resilient, competitive and capable of supporting innovation as digital technologies become increasingly embedded in global finance.
