European Central Bank launches platform for settling crypto securities

The European Central Bank and national central banks in the eurozone have launched a new platform designed to enable financial institutions to settle transactions in crypto securities directly using guaranteed central bank funds.

In a statement, the European Central Bank said it plans to invest part of its funds in crypto securities via the new "Pontis" platform to test the technology in practice.

Currently, trading in securities relies on a chain of intermediaries, with each bond or stock purchase passing through several separate steps, from the exchange to clearinghouses and finally to custody with specialized banks.