The European Central Bank (ECB) has announced plans to initiate a blockchain settlement pilot by the end of 2026 through a program named Pontes. This initiative aims to integrate distributed ledger technology (DLT) with the eurozone's core payment system, potentially modernizing Europe's financial infrastructure. The ECB's two-track plan, approved on Tuesday, will enable DLT transactions to be settled using central bank money. Pontes will focus on short-term solutions, launching in the third quarter of 2026 by linking the blockchain-based DLT platform with the TARGET financial services system. This pilot will leverage findings from the ECB's 2024 DLT exploratory trial, which involved over 50 experiments and 64 institutions, to test a unified settlement system for central bank money. The move aligns with the Eurosystem's commitment to fostering innovation while maintaining financial market security and efficiency.