ECB extends TARGET infrastructure hours to support Pontes and 24/7 DLT settlement
Key points
- The ECB will extend aspects of its TARGET settlement infrastructure following a consultation that drew 125 responses.
- The core RTGS system gains no additional hours in the near term; the initial steps address liquidity challenges in the instant payment system TIPS.
- The extension enables Pontes, the ECB's wholesale DLT settlement platform, to operate around the clock.
- The move narrows the mismatch between on-chain availability and central bank money settlement hours.
- Incremental DLT-specific accommodations appear likely to arrive faster than any system-wide TARGET reform.
The European Central Bank announced plans to extend aspects of its TARGET settlement infrastructure following a consultation that drew 125 responses. The real-time gross settlement system itself will not gain additional hours in the near term, but the initial steps are designed to address liquidity challenges in the instant payment system TIPS.
The extension enables Pontes, the ECB’s platform for wholesale distributed ledger technology settlement, to operate around the clock. This reads as a practical acknowledgement that tokenised assets and DLT rails require settlement windows beyond conventional RTGS hours, even as the core TARGET system retains its current schedule.
For anyone building on or alongside Pontes, the move narrows the mismatch between on-chain availability and central bank money settlement. It also suggests that incremental infrastructure changes may precede any broader TARGET overhaul, meaning DLT-specific accommodations could arrive faster than system-wide reform.
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