The European Central Bank has officially rolled out Pontes, its new market infrastructure designed to settle tokenized securities in central bank money. Among the first four distributed ledger technology (DLT) platforms connecting to Pontes is a system operated by Axiology, which uses technology derived from the XRP Ledger (XRPL).
Pontes infrastructure goes live with major banks and DLT operators onboard
The Eurosystem confirmed that Pontes launched on September 21, enabling settlement for tokenized securities in central bank currency. The initial group of DLT operators connected to the system includes Axiology, Clearstream, Cashlink, and SWIAT.
Multiple major banks and financial institutions have completed onboarding to Pontes. Deutsche Bank, Santander, Société Générale, and the European Investment Bank are among the first participants to connect, positioning themselves at the forefront of the tokenized securities ecosystem in Europe.
Axiology’s XRPL-based platform and its distinction from public XRP or Ripple
Axiology, one of the four initial DLT operators on Pontes, manages a private, permissioned blockchain platform built with open-source code from the XRP Ledger. This infrastructure enables only authorized financial institutions to validate transactions and run network nodes.
According to Axiology, its network operates independently from both Ripple and the public XRPL, marking a clear separation between its activities and the wider XRP ecosystem. The connection to Pontes highlights growing institutional interest in XRPL technology but does not entail the use of the XRP cryptocurrency or public ledger for settlement.
Mini dictionary: Axiology, a financial technology company, specializes in building permissioned blockchains for institutional digital asset transactions using XRPL-based frameworks.
While this move demonstrates continued adoption of XRPL-derived technology in regulated environments, tokenized European securities are not being settled in XRP tokens. The settlements occur in euro central bank money, facilitated via the connection between Pontes and the Eurosystem’s TARGET infrastructure.
XRPL institutional adoption and ECB’s tokenized asset plans
Across other areas, XRPL has seen increased institutional use, including tokenized Treasury settlements with Mastercard, Ondo, and JPMorgan. The network’s real-world asset tokenization, including lending and credit applications, has grown rapidly in value and scope.
The European Central Bank announced that it will invest a small part of its reserves in tokenized securities. These initial investments will focus on euro-denominated public sector and supranational bonds, with settlements to be routed via Pontes as the platform develops.
Only authorized institutions operate nodes on Axiology’s network, and the company has emphasized its independence from both Ripple and the public XRPL. This ensures participant control while leveraging XRPL technology within a secure, compliant environment.
Significance for Europe’s tokenized market infrastructure
Pontes represents a key step for the ECB as it transitions from experimental pilots toward fully operational tokenized securities settlement. Integrating a range of DLT platforms, including an XRPL-based system, signals the growing legitimacy and institutional focus on blockchain technology in European financial markets.
Industry observers have tracked billions of dollars’ worth of real-world assets tokenized on XRPL, with continued innovation targeting institutional-grade lending and structured credit deals.
