20 February 2025

• Eurosystem steps up efforts for innovative market infrastructures
• Two-track approach: develop solution which is interoperable with existing infrastructures; look into long-term integrated solution

The Governing Council of the European Central Bank (ECB) decided to expand its initiative to settle transactions recorded on distributed ledger technology (DLT) in central bank money. The initiative will follow a two-track approach. First, as soon as feasible, the Eurosystem will develop and implement a safe and efficient platform for such settlements in central bank money through an interoperability link with TARGET Services. A concrete time plan will be announced in due course. Second, the Eurosystem will look into a more integrated, long-term solution for settling DLT-based transactions in central bank money. This will also include international operations, such as foreign exchange settlement.

The Eurosystem wants to support the use of innovative solutions in its market…