24 June 2026

• Icelandic króna will be fifth currency available for settling instant payments through TARGET services
• ECB and Seðlabanki Íslands agreement will take effect as of 2028

The European Central Bank (ECB) and Seðlabanki Íslands today signed an agreement for Iceland to join the Eurosystem’s TARGET Instant Payment Settlement (TIPS) system. This will allow payments in Icelandic króna to be settled instantly in central bank money as of 2028.

The Icelandic króna will be the fifth currency available for settling retail payments instantly using the Eurosystem’s TARGET Services. The euro, Swedish krona and Danish krone are already available for settling payments in TIPS, while the Norwegian krone is scheduled to join in 2028.

“We are delighted that more and more European countries, including from outside the European Union, are joining the Eurosystem’s TARGET Services,” said ECB President Christine Lagarde after signing the agreement. “This reinforces the…