21 March 2024

• ECB and Danmarks Nationalbank sign agreement for Denmark to join T2 and TIPS in April 2025
• Danish krone to become third currency available for instant payment settlement in TIPS

The European Central Bank (ECB) and Danmarks Nationalbank today signed an agreement for Denmark to join the ECB’s T2 wholesale payment system and the TARGET Instant Payment Settlement (TIPS) service. This will facilitate the settlement of high-value payments in euro and Danish kroner in the T2 system and will make the Danish krone the third currency available for settlement in TIPS after the Swedish krona was included earlier this year.

Danish financial market participants have started testing both systems in preparation for the launch in April 2025. Danmarks Nationalbank already uses the T2 system for settling payments in euro and has used the TARGET2-Securities (T2S) platform for settlement of securities in both euro and kroner since October 2018. The inclusion of the Danish krone in the…