Tag: ECB

  • European Central Bank Launches Pontes Bridge for Tokenized Asset Settlement via TARGET Services

    European Central Bank Launches Pontes Bridge for Tokenized Asset Settlement via TARGET Services

    The European Central Bank (ECB) has officially launched Pontes, a new service enabling euro-area financial institutions to settle tokenized asset transactions using central bank money. The platform bridges distributed ledger technology (DLT) platforms with the Eurosystem’s TARGET Services, offering a secure settlement method for wholesale markets.

    Starting Monday, September 21, 2026, eligible credit institutions can leverage Pontes for wholesale transactions, with initial availability limited to standard European business hours. The ECB plans to expand the service to round-the-clock settlement in later phases.

    ECB President Christine Lagarde is scheduled to open a roundtable event in Frankfurt at 17:00 CET, followed by a panel discussion chaired by Executive Board member Piero Cipollone. The launch represents a key milestone in the Eurosystem’s strategy to integrate DLT while preserving the role of central bank money as the settlement anchor.

    Pontes, Latin for “bridges,” connects tokenized markets—where bonds, deposits, and other claims are represented as digital tokens on distributed ledgers—with existing Eurosystem infrastructure. This interoperability allows participants to settle the cash leg of tokenized trades in central bank money, addressing a fundamental need as tokenization gains traction.

    The ECB developed Pontes following a comprehensive testing program from May to November 2024, involving 64 market participants in over 50 trials. The program tested connections between DLT platforms and central bank settlement systems, processing more than €1.5 billion in transactions. Insights from these trials shaped the final service design.

    Pontes is part of a two-track strategy alongside Appia, a longer-term initiative exploring a future European financial ecosystem built on tokenization and DLT. While Pontes focuses on immediate interoperability, Appia aims to produce a blueprint by 2028 for common infrastructure and standards. Together, they reflect the Eurosystem’s commitment to innovation without disrupting current systems.

    The service is distinct from the proposed digital euro, which targets retail users for everyday payments. Pontes operates exclusively in wholesale financial markets, providing institutions a pathway to use central bank money in tokenized transactions without altering consumer payment access.

  • FTSE 100 Opens Flat at 10,670 Ahead of ECB Decision; Brent Crude Holds Above $100

    FTSE 100 Opens Flat at 10,670 Ahead of ECB Decision; Brent Crude Holds Above $100

    The FTSE 100 opened flat at 10,670.04 ahead of a European Central Bank decision, as a US Treasury announcement on bond buybacks failed to impress. Brent crude futures rose 0.09% to USD 101.3 per barrel. US West Texas Intermediate (WTI) advanced 0.22% to USD 96.26 per barrel.

    Sterling traded at USD 1.3354 on Thursday, falling from USD 1.3548 at the time of the London equities close on Tuesday. Versus the euro, it fell to EUR 1.1641.

    Gainers & Losers

    On the upside, Whitbread climbed 1.98% to 2,366p. Compass Group advanced 1.87% to USD 31.10, while Aberdeen Group gained 1.53% to 252.40p. JD Sports Fashion rose 1.21% to 80.60p, Fresnillo added 1.08% to 3,082p, and ICG increased 0.94% to 1,943p.

    On the downside, Associated British Foods fell 9.31% to 1,832p. Computacenter declined 2.99% to 5,035p, while Endeavour Mining dropped 1.39% to 4,605p. Rio Tinto slipped 0.84% to 7,538p, Lion Finance Group lost 0.74% to 13,350p, and Games Workshop Group edged 0.51% lower to 17,480p.

    Q1 Recorded 7% Sales Increase

    Currys reported like-for-like revenue growth of 7% in Q1, with UK and Ireland sales up 6% and the Nordics up 9%. The retailer said it is “comfortable with market consensus” and left full-year guidance unchanged. Despite this, shares in the group fell 1.3%. Recurring Services revenue continued to grow, with flexpay adoption up 30 basis points year-on-year to 23.6% and iD Mobile subscribers rising 16% to more than 2.7 million.

    In the Nordics, sales growth was led by white goods and mobile, supported by continued momentum in new categories, B2B and Services, with market share gains in most countries against soft comparatives.

    KKR Acquired Eleco

    Private equity firm KKR has snapped up construction software provider Eleco in a deal that values the company at around GBP 208 million. The takeover gives shareholders GBP 235 per share, representing a 74.7% premium over the previous day’s closing price. Investors holding just over 45.2% have already pledged support for the takeover, which is expected to close in early 2027.

    THG Recorded Revenue Rise

    Ecommerce company THG posted a 7% rise in revenue in the first half of the year after a boost in sales in both its beauty and nutrition divisions. The company said revenue across the group was GBP 828.7 million in the period, up 7.2% year on year and above guidance of 6.5%. THG Beauty, which includes brands like Lookfantastic and Cult Beauty, delivered 5.9% revenue growth while THG Nutrition sales rose 9.2%.

    Global Market View

    In the US, the Dow Jones Industrial Average dropped 405.41 points, or 0.77%, to end at 52,380.66. The S&P 500 shed 0.48% to close at 7,636.36, while the Nasdaq Composite fell 0.64% to 26,253.34. In Asia on Thursday, Tokyo’s Nikkei 225 advanced 0.2% to 65,270.95, while China’s Shanghai Composite fell 0.43%. Hong Kong’s Hang Seng declined 1.26%, and South Korea’s Kospi declined 0.25%. In India, both the Nifty 50 and the Sensex rose by 0.03% and 0.047%, respectively.

    Also Read: Stock Market Update: Nifty 50 Opened 0.06% Higher, Sensex Fell 21.69 Points Amid Rising Oil Prices

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