The European Central Bank (ECB) has warned that if Europe wants its digital markets to grow safely, stablecoins and tokenized deposits need to be tied to central bank funds.
The plan aims to improve crypto-related financial infrastructure, enable faster and more secure payments, and ensure deposits have a reliable anchor that reduces risk.
ECB promotes tokenized finance to build European digital asset market
ECB board member Piero Cipollone said in a recent speech in Brussels that the tokenization market is growing, with around €4 billion in digital bonds issued since 2021.
These assets are built using distributed ledger technology and can be issued, traded, settled, and stored within one digital system.
Tokenization, on the other hand, converts traditional assets into blockchain tokens, enabling faster settlements, automated payments, and increased transparency. The ECB therefore believes that this tokenized model will reduce friction and make its activities more efficient.
But officials said the system still has issues, including the lack of a separate platform and reliable on-chain payment assets.
Central bank money as the foundation of digital markets
The ECB therefore emphasized that Europe’s tokenized financial market will not expand without a public payment anchor, meaning central bank currencies issued on digital platforms.
To address this, the Eurosystem is preparing a new initiative called “Pontes”, which is scheduled to start in the third quarter of 2026. The system connects blockchain platforms and central bank funds to enable secure settlement of tokenized assets.
This could also support stablecoin interoperability and improve financial infrastructure linked to cryptocurrencies.
Why regulators want clear rules
Industry groups and banks are also calling for clearer rules regarding tokenized money and stablecoins. Europe’s Cryptocurrency Market Regulation (MiCA) already provides a legal foundation for digital assets, but experts say more work is needed to support this new infrastructure.
But Europe is also under pressure to keep up with global trends. US-linked stablecoins dominate global markets, and some ECB officials fear they could weaken Europe’s financial autonomy if left unchecked.
Currently, the total value of the stablecoin market has reached $320 billion, with USDT accounting for the largest share.
