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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.

Esports Must Put Children’s Rights Ahead Of Competitive Ambitions, Report Says

by THEFUTURE.TEAM

Competitive gaming can help children build skills, find community and pursue achievement. However, as esports grows, young players face health, psychological and online safety risks, often without consistent safeguards, according to a new report from Save the Children.

The report, Protecting Child Rights in Esports, estimates that up to 300 million children worldwide participate in esports. It calls on the industry to prioritise the rights set out in the United Nations Convention on the Rights of the Child over competitive ambitions.

Potential risks include disrupted sleep, musculoskeletal pain, anxiety, depression, sexism and online harassment. Intensive training can also leave less time for education, family and friends.

“Esports offers exciting opportunities for children, but participation should never come at the expense of their rights, wellbeing or development,” said Theo Toresson, a psychologist and gaming expert at Save the Children.

Children must be treated “as children first and competitors second”, he added, calling for their involvement in decisions that affect them.

Training Standards Remain Uneven

The report highlights the lack of widely established standards for training hours and methods. Extended periods of sitting, insufficient breaks and schedules that interfere with sleep, exercise and schoolwork can affect young players’ health and development.

Poor posture and long sessions may also cause neck, shoulder and wrist pain, while late-night gaming can undermine sleep, concentration and mood.

Although some organisations provide guidance on breaks, nutrition, sleep and hydration, a representative of a national esports federation told the report that this advice often draws on separate studies rather than a centralised set of guidelines.

The report also notes positive findings: many professional esports players report satisfactory levels of physical activity, and higher-ranking players often place greater emphasis on fitness.

Online Harassment Adds To Mental Health Risks

Gaming communities and livestreaming platforms can help young players build connections and public profiles, but they may also expose them to cyberbullying, discrimination and privacy violations.

An analysis cited in the report examined chatrooms across 302 gameplay segments involving the 20 most popular Twitch streamers. It found sexist language in 62% of streams, racist language in 37%, ableist language in 84% and violent language in 97%.

Some esports federations and teams require staff to receive mental health first-aid training, but the practice remains uncommon. Young competitors may also face public scrutiny through livestreams, interviews and social media before they have the support to manage it.

Safeguards Must Extend Beyond Gameplay

The report raises further concerns about unequal participation linked to gender, race, LGBTQIA+ identity and disability. It also highlights children’s limited involvement in decisions affecting them and the risk of economic exploitation by teams, agents or parents, particularly where contracts lack transparency.

Inadequate supervision at live events presents additional risks.

Save the Children argues that protecting young competitors requires more than advice on posture and screen breaks. Clear standards, responsible oversight and age-appropriate safeguards are needed to ensure esports supports children’s development rather than putting it at risk.

As competitive gaming expands, the industry faces growing pressure to make children’s rights and wellbeing part of its operating standards.

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