Tag: European Central Bank

  • 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 Lower as Oil Nears $100; Computacenter Profit Forecast Lifts Sentiment

    FTSE 100 Opens Lower as Oil Nears $100; Computacenter Profit Forecast Lifts Sentiment

    The FTSE 100 opened 16.06 points lower at 10,806.07 on Tuesday as investors awaited fresh direction from the European Central Bank’s interest rate decision and upcoming US inflation figures. Brent crude futures rose 1.75% to $98.70 per barrel, while US West Texas Intermediate (WTI) advanced 2.89% to $94.12 per barrel.

    Sterling traded at $1.3538 on Tuesday morning, up from $1.3516 at the London equities close on Monday. Against the euro, it slipped to €1.1624 from €1.1638.

    Gainers and Losers

    On the upside, Computacenter climbed 4.64% to 5,860p after upgrading its profit forecast for the second time this year. Auto Trader Group advanced 3.60% to 523.60p, while Antofagasta gained 1.51% to 3,957p. Croda International rose 1.50% to 3,312p, BP added 1.43% to 554.20p, and Glencore increased 1.42% to 612.40p.

    On the downside, HSBC Holdings fell 1.43% to 1,556.40p. Next declined 1.16% to 15,320p, while Whitbread dropped 1.02% to 2,324p. Games Workshop Group slipped 0.71% to 18,270p, Lion Finance Group lost 0.67% to 13,420p, and AstraZeneca edged 0.60% lower to 11,970p.

    Oil Nears $100 Per Barrel

    Oil prices have surged, nearing the $100 per barrel mark. Brent crude gained 1.75% to reach its highest level since July. Reports that Iran-backed Houthis attacked a Saudi energy plant have added fresh pressure on investors. Earlier today, Iran threatened new sanctions on tankers attempting to travel through the Strait of Hormuz.

    Computacenter Increases Profit Forecast

    Computacenter upgraded its profit forecast for the second time this year after its order backlog quadrupled in the last six months. The IT supplier expects to bring in no less than £380 million in pretax profit for the year, well above the previous consensus of £341 million. The order backlog reached a record £9.3 billion, up 323% year-on-year. The group, promoted to the FTSE 100 in the June reshuffle, hiked its dividend by nearly 15% to 27.1p.

    Funding Circle Lifts Profit Forecast

    The boss of Funding Circle has laid out plans for departure as the fintech lifted its profit forecast for the year ahead. Lisa Jacobs, who has led the firm since 2022, will step down as chief executive by no later than September 2027. Revenue jumped 50% to £138 million after loan originations swelled 43% to just over £1 billion. The firm expects profit to reach over £40 million for the year, upgraded from previous expectations of £35 million. Funding Circle also announced a fresh £25 million buyback, bringing total capital returned via buybacks to £100 million since March 2024.

    Global Market View

    In the US, Wall Street was closed on Monday for the Labor Day holiday. In Asia on Tuesday, Tokyo’s Nikkei 225 fell 1.7% to 65,269.33, while China’s Shanghai Composite rose 0.2%. Hong Kong’s Hang Seng declined 0.32%, and South Korea’s Kospi declined 0.58%. In India, both the Nifty 50 and the Sensex fell by 0.54% and 0.59%, respectively.

    Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks involve risk. Always conduct your own research before investing.