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Europe’s tokenised finance infrastructure has taken an important step forward. The launch of Pontes brings central bank money settlement to tokenised transactions through the Eurosystem’s existing infrastructure. As Europe prioritises coordinated settlement infrastructure and the US develops a more varied mix of private digital money and tokenised market structures, international banks operating from Ireland face a strategic question: where do they want to participate as these markets evolve?
Asia is also advancing tokenised finance, with Singapore progressing tokenised funds and Hong Kong moving tokenised deposits into real-value transactions. Several banking groups active in these markets have also established European and Irish operations, creating a potential link between developments in Asia and the future evolution of tokenised finance in Ireland. Against this global backdrop, the interplay between EU and US developments offers a useful lens for international banks of all origins to consider the opportunities for their Irish operations.
Pontes brings tokenised settlement closer to implementation
The European Central Bank launched Pontes on 21 September 2026. The new Eurosystem solution enables wholesale transactions in tokenised assets conducted on market distributed ledger technology platforms to settle in central bank money via the existing TARGET infrastructure. An initial group of market participants and distributed ledger operators has completed onboarding, with additional participants expected to connect in the coming months.
Access to a risk-free settlement asset has been one practical barrier to wider institutional adoption. Pontes addresses that barrier by connecting tokenised transactions with established Eurosystem infrastructure rather than replacing the existing financial system.
The implications should not be overstated. While legal, operational, and commercial questions remain, Pontes will expand progressively in line with market needs, with full implementation expected by 2028. By building on the Eurosystem’s 2024 tests and connecting tokenised transactions with established settlement infrastructure, Pontes moves the European debate towards practical implementation.
"Pontes gives international banks greater clarity on Europe’s direction. The question now is where they can create value as tokenised finance moves towards practical implementation."
Fionán Moriarty,Partner, PwC IrelandEurope and the US are taking different routes
Europe’s approach is centred on infrastructure, settlement, and the safe integration of tokenised assets into wholesale financial markets. Pontes sits alongside Appia, the Eurosystem’s longer-term strategic initiative for tokenised wholesale finance. The two are complementary but distinct. Pontes provides the near-term settlement capability, enabling wholesale transactions in tokenised assets to settle in central bank money. Appia, meanwhile, is exploring how an integrated European wholesale financial ecosystem based on tokenisation and distributed ledger technology could be designed. The Eurosystem intends to publish an Appia blueprint in 2028, setting out key findings, recommendations and principles for a safe, innovative and integrated European tokenised financial ecosystem. Insights from Appia will also inform the continued development of Pontes.
The US is developing from a different starting point. It has a more heterogeneous, market-led environment, spanning privately issued digital money, including stablecoins and tokenised commercial bank deposits, as well as multiple emerging approaches to tokenised securities and market infrastructure.
These approaches aren’t necessarily rivals. They’re distinct routes towards more digital financial markets. Europe is pursuing a coordinated infrastructure and a 'central bank-money' settlement model, while the US is developing through a more varied mix of private digital money, commercial applications, and competing tokenised market architectures.
International banks need to consider both. The practical questions concern products and operating models rather than technology alone. How could tokenisation affect custody, securities servicing, settlement, treasury, and collateral management? Where could demand emerge? Which parts of the value chain warrant investment?
Ireland can connect the two
Ireland’s opportunity is tangible. Institutions with roots in both US and European financial markets already have substantial operations here. These organisations span banking, custody, asset servicing, and fund administration, placing Ireland close to the activities that tokenisation could change. Ireland’s broader international financial-services footprint provides the context for that opportunity.
European digital asset infrastructure and US digital money innovation could therefore converge within institutions operating from Ireland. The opportunity isn’t to predict which model will prevail; it’s to build the capabilities needed to operate across both.
That could mean connecting tokenised securities with central bank money, commercial bank deposits, or other regulated forms of digital cash. It could also mean adapting established custody, servicing, legal, regulatory, and risk management capabilities to support assets operating across traditional and tokenised infrastructure and across different regulatory regimes.
Adoption will take time, and market demand will ultimately determine the pace of change. But waiting for a settled end state carries its own risk. Banks don’t need to make irreversible technology choices today, but they do need a clear view of where they could participate and which capabilities will preserve their options.
For Ireland, this is more than a digital assets question. It’s a competitiveness question. The institutions best positioned for the next phase may be those that can connect Europe’s emerging infrastructure with innovation and demand from global markets.
Questions for banking leaders
The direction of travel is becoming clearer. Leadership teams should now consider five questions:
1. Where can we create value?
Identify the most relevant opportunities across custody, asset servicing, settlement, treasury, collateral management, and digital cash.
2. How will we operate across markets?
Assess how European infrastructure and US-led digital money developments could affect products, customers, and existing global operating models.
3. What must work with what?
Determine how tokenised assets, central bank money, commercial bank deposits, traditional systems, and different regulatory frameworks may need to work together.
4. Which capabilities should we build now?
Prioritise the skills, partnerships, governance, and technology foundations that improve readiness without locking the organisation into one market model.
5. How can our Irish operations contribute?
Consider whether expertise already based in Ireland across banking, custody, servicing, and funds can support the organisation’s wider digital asset strategy.
We're here to help
PwC helps financial institutions assess how tokenisation and digital cash could affect their products, operating models, and strategic priorities. Our banking, regulatory, and technology specialists can support opportunity assessment, operating model design, regulatory readiness, and implementation planning. Contact our team to discuss what Europe’s developing digital asset infrastructure could mean for your organisation.
For further perspectives on how tokenisation is reshaping market structure, regulation and the future of financial services globally, explore the PwC US insight Tokenisation and US market structure, alongside perspectives from our colleagues in PwC Legal Germany, including the PwC Global Crypto Regulation Report 2027 and expert blog, From Rulebook to Market Architecture.
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