ECB Says Stablecoins and Tokenized Deposits Need Central Bank Money | Crypto Regulation News
Crypto regulation news: ECB Says Stablecoins and Tokenized Deposits Need Central Bank Money. This update explains what changed, why it matters for the crypto market, and what investors, exchanges, and blockchain companies should watch next.
Crypto Regulation Update
Tokenized deposits and stablecoins need tokenized central bank money as a public settlement anchor if Europe’s tokenized financial markets are to scale, Piero Cipollone, a member of the European Central Bank’s Executive Board, said on Monday.Cipollone pointed to Pontes, the Eurosystem’s distributed ledger technology (DLT) settlement initiative, which is designed to connect market DLT platforms with the Eurosystem’s TARGET Services and provide settlement in central bank money.“Without tokenised central bank money, a seller of a tokenised security may receive payment in an asset they are not comfortable holding – one exposed to price volatility or credit risk – which limits the market’s ability to scale,” Cipollone said in a speech at the House of the Euro in Brussels on Monday.The ECB said Pontes is due for an initial launch in the third quarter of 2026, allowing market participants to settle DLT-based transactions in central bank money. The comments build on the ECB’s broader Appia initiative, published on March 11, which is intended to produce a blueprint for a future European tokenized financial ecosystem by 2028.Related: ECB opens digital euro work on ATMs and payment terminalsEurope’s tokenized markets need legal clarityBeyond settlement in central bank money, Cipollone said Europe also needs closer public-private cooperation and a legal framework that matches the technology.One of Appia’s building blocks serves as an interoperability standard for assets, ensuring that tokenized assets can be transferred across different DLT platforms via a compatible data format and smart contract standards.High-level timeline for Pontes and Appia. Source: ECBCipollone urged market infrastructure operators, banks, custodians and technology providers to explore and submit feedback related to the Appia roadmap, seeking to foster more public-private partnerships.Related: Sweden’s H100 eyes Europe’s No. 2 Bitcoin treasury with 3,500 BTC dealCipollone also said Europe may ultimately need a dedicated legal framework to support the seamless issuance and transfer of tokenized assets across the bloc.He called the European Commission’s proposal to extend the DLT Pilot Regime an “important development,” but cautioned that the absence of a holistic tokenization framework introduces the risk of “building advanced settlement infrastructure on a patchwork of regulations, leaving us unable to fully reap the benefits.”The comments come days after stablecoin issuer Circle submitted feedback to the European Commission’s Market Integration Package on March 20, urging lawmakers to expand the existing DLT Pilot Regime and provide e-money token (EMT) cash account services to authorized crypto-asset service providers.Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Why This Crypto Regulation News Matters
First, this development may affect exchanges, token listings, stablecoins, compliance rules, and market sentiment. In addition, it may influence licensing, reporting requirements, and future enforcement actions. As a result, traders and investors should watch the next legal and policy steps closely.
What to Watch Next
Watch for follow-up statements from regulators, court filings, exchange responses, and policy updates. In particular, any new guidance on licensing, enforcement, or stablecoin rules could have a direct impact on the broader crypto market.
