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ECB Moves To Build Unified European Market For Tokenised Assets

by News Editor

The European Central Bank is moving to build a unified European market for tokenised assets, warning that incompatible digital platforms could deepen fragmentation across Europe’s capital markets.

Speaking at a Deutsche Bundesbank symposium in Frankfurt, ECB Executive Board member Piero Cipollone said the central bank had moved from developing a vision for tokenised finance to implementation through its Pontes and Appia projects.

Tokenisation Could Reshape Financial Markets

Distributed ledger technology (DLT) could make financial markets more efficient by allowing assets to be represented as programmable digital records and transferred around the clock with greater automation.

Europe’s financial infrastructure remains fragmented, with 31 central securities depositories, 14 central counterparties and 323 trading venues. More than 95% of securities transactions by volume and value were settled between parties within the same central securities depository in 2023, according to Cipollone.

Tokenisation could bring issuance, trading, clearing, settlement, custody and asset servicing into a more integrated digital environment. Smart contracts could also automate processes such as coupon payments, collateral transfers and compliance checks.

Tokenised Finance Moves Toward Wider Adoption

Global adoption is beginning to accelerate. Tokenised traditional assets recorded on public blockchains increased roughly fivefold between March 2025 and March 2026, Cipollone said.

In the U.S., one private platform processed an average of $354 billion in tokenised repo transactions per day in March 2026, four times its average daily volume a year earlier. European institutions are also developing tokenised bonds, deposits, collateral and settlement solutions.

The Eurosystem began accepting marketable assets issued through DLT-based services as eligible collateral at European central securities depositories in March. Despite that progress, tokenised real-world assets remain small compared with global financial markets and continue to face limited liquidity and secondary-market activity.

ECB Wants Central Bank Money At The Core

Cipollone identified fragmentation, the loss of central bank money as a settlement anchor and excessive dependence on external infrastructure as three key risks for Europe.

More than 50 Eurosystem trials and experiments involving 64 market participants in 2024 showed that central bank money could be used to settle transactions on DLT platforms. The ECB said the work confirmed that access to central bank money is a key condition for tokenised finance to develop safely and at scale.

“Central bank money does not carry credit or liquidity risk. What’s more, it serves as the common settlement anchor across the financial system,” Cipollone said.

Pontes And Appia Set The Framework

Pontes is designed to connect market-based DLT platforms with the Eurosystem’s TARGET Services, allowing the cash leg of transactions to settle in central bank money. The ECB plans to launch the service in September 2026, with operating hours eventually expanding and a 24/7 service planned by mid-2028.

Appia focuses on the broader architecture and governance of a European tokenised financial ecosystem. Its roadmap covers interoperability standards, collateral management, cross-border transactions, tokenised central bank money and the legal and regulatory framework. The ECB aims to produce a blueprint for the ecosystem by 2028.

The two projects are designed to work together. Pontes provides the near-term settlement infrastructure, while Appia addresses the longer-term architecture, standards and governance needed for an integrated market.

Common Standards Will Determine Success

Cipollone said successful expansion will depend on common standards and interoperability, cooperation between public and private sectors, and an integrated legal framework.

“Competition should be in services, quality and price, not through incompatible standards or walled gardens,” he said.

Technology alone will not eliminate fragmentation. European rules also need greater clarity on ownership rights, settlement finality, liability, custody, asset servicing and the enforceability of smart-contract outcomes.

“Technical interoperability without legal compatibility will remain incomplete and fail to overcome fragmentation,” Cipollone said.

For the ECB, the objective extends beyond modernising settlement. Coordinated infrastructure, common standards and a compatible legal framework could help create a more integrated and competitive European capital market.

NERDs Replace FIRE As Young Workers Lose Confidence In Retirement

by THEFUTURE.TEAM

The FIRE movement promised younger workers a path to financial independence and early retirement. Now, a different group is emerging in the UK: NERDs, or the “Never Ever Retiring Demographic.”

Growing pessimism among Gen Z and millennials is driving the shift, with many questioning whether retirement will ever be financially achievable. Some are responding by reducing or abandoning pension contributions altogether.

Young Workers Are Losing Confidence In Retirement

Research from People’s Pension, a major UK workplace pension provider, found that 47% of Gen Z respondents aged 18 to 27 do not engage with their pension. Another 12%, equivalent to about 2.2 million young people, have stopped saving for retirement because they expect to work indefinitely.

Wider financial pressures are contributing to that outlook. High living costs have pushed milestones such as homeownership, marriage, having children and retirement further away for many younger workers, while inflation, layoffs and stagnant wages have added to uncertainty.

Pension Providers Face A Communication Gap

Financial pressure is only part of the problem. Young workers also say pension providers are failing to explain long-term saving in ways that feel relevant to them.

About 36% of respondents said providers do not explain retirement saving effectively. Among them, 27% said companies appear more focused on selling products than educating customers, while 16% cited complicated language and jargon.

A clear generational difference emerges in the responses. Some 29% of Gen Z respondents said providers fail to explain why pension saving matters, compared with 13% of Gen Xers and Baby Boomers. Similarly, 17% of Gen Z said providers do not use channels they engage with, versus 4% among older generations.

Clearer information could influence behavior. About 70% of Gen Z respondents said they would have started saving earlier if they had known that beginning in their 20s could potentially double their retirement pot compared with starting in their 30s. Another 63% said learning about tax relief and employer contributions motivated them to save.

“In a world where financial doom dominates pension conversations, young savers are tuning out,” said Kirsty Ross, proposition director at People’s Pension. “Our research shows they are not disengaged because they don’t care, they are disengaged because the messages aren’t working.”

Young Savers Want Simpler Tools

Progress bars and goal trackers were among the most popular tools respondents said could make pensions more relevant, cited by 31%. Another 26% wanted reassurance that they could start with small amounts, while 23% wanted examples of what people their age are doing.

Clear, bite-sized steps were cited by 22%, while 19% said light-hearted and relatable stories could make pensions more accessible.

People’s Pension has responded with Pension Drop, a campaign using social media influencers, live events and lifestyle personalities to encourage conversations about retirement saving.

“Looking back, I really wish I’d started earlier,” said Iain Stirling, comedian, TV presenter and Pension Drop ambassador. He said contributions made in someone’s 20s or 30s can make a significant difference later, while employer contributions and tax relief can increase the value of smaller payments.

Small Changes Can Improve Long-Term Saving

Stirling urged younger workers to check their pension provider, establish whether they have multiple pension pots and make sure they are contributing enough to receive the full employer match.

He also recommended increasing contributions after a pay rise or bonus, allowing workers to raise long-term savings without making a large immediate change to their spending.

For younger workers facing high living costs and uncertain career prospects, pension saving remains a difficult sell. Clearer information about employer contributions, tax relief and the long-term effect of starting early could help make retirement planning more tangible.

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