A ‘roadmap’ for a strategic initiative to shape the development of a European tokenised financial ecosystem ‘in which central bank money continues to play a central role’ has been published today by the Eurosystem.

The ‘Appia’ plan is devised to steer the Eurosystem – which comprises the Frankfurt-headquartered European Central Bank (ECB) and national central banks of the 21 European Union (EU) member states whose currency is the euro – and public- and private-sector organations in building ‘integrated, innovative and resilient’ tokenised wholesale financial markets. The Eurosystem ‘plans to crystallise its vision’ in a blueprint to be published in 2028.

Tokenisation is the process of issuing or representing assets in the form of digital tokens, typically recorded on distributed-ledger technology (DLT) networks. It has emerged as a hot, transformative topic in finance, accelerating over the past three years as institutions move from pilot projects to live, blockchain-based real-world asset trading.

Tokenisation and DLT have the potential to improve efficiency in wholesale financial markets by allowing multiple steps of an asset’s lifecycle – from issuance and trading to settlement, custody and servicing – to be ‘bundled’ on a single platform, the announcement (11 March) explains. Moreover, tokenisation allows the deployment of smart contracts ‘that enable a large range of innovative solutions’, it adds.

“With Appia, we are building a road from today’s financial system to tomorrow’s tokenised markets, firmly grounded in central bank money,” ECB’s Executive Board member Piero Cipollone said in the announcement.

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‘Keeping pace’ with digital innovation

The initiative was effectively kicked off almost three years ago when, in April 2023, the Eurosystem announced planned activity to explore potential solutions for central bank money settlement of wholesale transactions recorded on DLT platforms.

The work was described as ‘part of the Eurosystem’s broader efforts to ensure that developments in central bank money keep pace with and contribute to digital innovation in wholesale and retail payments, and that central bank money remains a monetary anchor that supports the stability, integration and efficiency of the European financial system and payments system.’

Tests were conducted the following year (2024) using three Eurosystem solutions – respectively developed by Deutsche Bundesbank, Banca d’Italia and Banque de France – enabling wholesale transactions recorded on DLT platforms to be settled in central bank money in the Eurosystem-operated T2 real-time gross settlement (RTGS) system.

This exploratory work, which involved more than 50 trials and experiments over two ‘waves’, came to an end in November 2024. More than 200 transactions took place, with a total value of €1.59 billion settled. 

‘The high level of interest in this initiative, with 64 eligible participants across nine jurisdictions settling almost €1.6bn in CeBM [central bank money], confirmed the market interest in DLT and the use of tokens,’ an ECB report noted. ‘Some of the financial stakeholders that took part have firm plans to develop and use DLT in wholesale financial markets.’

RELATED ARTICLE ECB confirms participants for trials using DLT for central bank money settlement – a news story (8 April 2024) on initial explorations

Appia’s long-term focus

Just over eight months ago (1 July 2025) the ECB announced that its Governing Council had approved the next steps for the explorations ‘in line with the Eurosystem’s commitment to supporting innovation without compromising on safety and efficiency in financial market infrastructures.’

A ‘two-track’ approach of complementary initiatives is being taken. ‘Pontes’, which is the first track, aims to provide a ‘short-term offering to the market’, including a pilot phase. Appia is focused on developing a ‘concrete’ long-term strategy and solution.

Pontes will offer a Eurosystem DLT-based solution, linking DLT platforms and TARGET Services to settle transactions in central bank money. (TARGET Services are financial market infrastructure services including T2 for settling payments, T2S for settling securities and TIPS for settling instant payments). 

Work began six months ago (October 2025), focusing initially on preparing for the pilot phase – timetabled to launch in the third quarter of his year (2026) – and, later on, ‘enhancements’. The aim is to offer a single Eurosystem solution that incorporates features used in the 2024 exploratory work. The feasibility of ‘further enhancements in line with the TARGET Services operational, legal and technical standards’ will also be explored during the pilot. 

Appia focuses on developing a wider approach for an ‘innovative and integrated ecosystem in Europe that also facilitates safe and efficient operations at the global level’. It will specifically investigate different configurations for DLT networks ‘that could serve as basic infrastructures for wholesale financial services.’

‘Shared infrastructures based on common standards could help reduce fragmentation, lower barriers to entry and support competition and innovation across Europe’s financial markets,’ today’s announcement explains. ‘The analysis will consider technological, market-driven and broader economic and geopolitical factors, including the trade-offs between single shared networks and multiple interconnected networks. Ensuring common standards and European governance will be a key objective.’

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Strategic symmetry with digital euro

Over the next two years, work under the Appia roadmap will ‘inform and shape the delivery of tokenised market infrastructures and services’ both by the market and by the Eurosystem’s own Pontes offering, ‘as it is gradually enhanced’.

‘By preserving the role of central bank money as the anchor of the monetary system through Appia, the Eurosystem aims to ensure that monetary policy implementation remains effective, and that financial stability and the smooth functioning of payment systems are safeguarded,’ today’s announcement explains.

‘The initiative seeks to foster a more integrated, competitive and innovative European payments and securities environment, strengthening Europe’s strategic autonomy and resilience, and ensuring the euro’s continued relevance as an international currency,’ the announcement continues.

There is strategic symmetry with the ECB’s work on a central bank digital currency (CBDC) – the proposed digital euro. In a speech last September, for example, Cipollone spoke of the CBDC’s potential to “bolster Europe’s unity, safeguard our autonomy and strengthen our resilience”.

A decision on whether to actually issue a digital euro is contingent on the adoption of a legal framework but technical preparations are well advanced. The ECB stated on 30 October last year that a pilot exercise and ‘initial transactions’ could take place as of ‘mid-2027’, with ‘potential first issuance’ slated for 2029.

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External involvement sought

The Appia project will be developed in ‘close cooperation’ with market participants, public-sector bodies and academia, today’s announcement states.

The Eurosystem is now inviting feedback and expressions of interest in contributing to analytical and practical work. Alongside the main Appia documentation, an online consultation form has been published, with a deadline of 22 April for responses (a five-page ‘overview of questions and guidance on submitting responses’ is also published).

Other multi-party international initiatives in the same ballpark include ‘Project Agorá’ – the major cross-border tokenisation initiative announced in 2024 by the Switzerland-headquartered Bank for International Settlements (BIS).

Project Agorá (Greek for ‘marketplace’) involves BIS and seven of the world’s most technologically engaged central banks teaming up with the private sector to explore how tokenisation can improve the functioning of wholesale cross-border payments. Banque de France is involved, representing the Eurosystem.

Meanwhile in the UK, which left the EU just over six years ago, the government published a ‘Wholesale Financial Markets Digital Strategy’ in July 2025. Significant initiatives include the Digital Securities Sandbox (DSS) for testing DLT-based issuance and settlement and the digital gilt instrument (‘DIGIT’ – blockchain bond) pilot.