Jennifer Jacquemart – European Commission · CC BY 4.0 · Wikimedia Commons · Source · License
On October 29, 2026, European Central Bank (ECB) Executive Board member Piero Cipollone announced the roadmap for the Eurozone’s transition to a T+1 securities settlement cycle, scheduled for October 11, 2027. Speaking at the EU T+1 Industry Committee in Frankfurt, Germany, he detailed plans for this transition alongside the deployment of Distributed Ledger Technology (DLT) based asset tokenization infrastructure. This reform aims to reduce settlement risk and enhance the competitiveness of European capital markets by upgrading the ‘T2S’ securities settlement platform’s night-time processes and integrating the central bank money-based wholesale settlement network ‘Pontes’ and the unified ecosystem ‘Appia’.
Cipollone emphasized that shortening the period from trade execution to settlement from two days (T+2) to one day (T+1) is more than a mere technical adjustment; it acts as a catalyst for the standardization and automation of Europe’s entire post-trade infrastructure. The ECB, in collaboration with the European Securities and Markets Authority (ESMA) and the European Commission, intends to support market participants in their transition to T+1 and continue to advance integrated settlement networks to prevent liquidity fragmentation.
T+1 Go-Live Scheduled for October 11, 2027, with T2S Night-Time Settlement Upgrades
According to the ECB, the Eurozone financial market is set to adopt T+1 on October 11, 2027. Reducing the time gap between trade and settlement lowers counterparty risk and market exposure, while improving the efficiency of liquidity management. The ECB confirmed that its central bank money-based settlement platform, ‘TARGET2-Securities (T2S),’ already possesses the technical capability to handle T+1 and same-day (T+0) settlement.
However, to support the tighter settlement timetable under the T+1 regime, the ECB will concurrently refine T2S’s operational processes. The ECB plans to completely overhaul the T2S night-time settlement process by June 2027. This upgrade is intended to increase processing speed and ensure the stability of pre-opening settlements, helping market participants meet the more stringent deadlines.
Acceptance of DLT-based Assets as Collateral and Expansion of the ‘Pontes’ Wholesale Platform
Cipollone presented DLT and asset tokenization as the next-generation technologies that will drive long-term infrastructure transformation alongside the T+1 shift. As of March 30, 2026, the ECB officially began accepting DLT-based securities issued through Central Securities Depositories (CSDs) as eligible collateral for Eurosystem credit operations. The authorities are currently undergoing legal and technical assessments to expand collateral eligibility to include DLT assets that exist outside of traditional settlement systems.
Additionally, the ECB unveiled performance results and expansion plans for ‘Pontes,’ the wholesale settlement platform that launched on September 21, 2026. Pontes serves as a critical infrastructure connecting private DLT platforms directly with ECB TARGET services, enabling the settlement of tokenized assets using safe central bank money.
Key Milestones for Pontes and Appia
- March 30, 2026: Eurosystem accepts CSD-issued DLT securities as eligible collateral (Completed)
- September 21, 2026: ‘Pontes’ platform for central bank money-based settlement launched (Completed)
- October 28, 2026: Publication of report on the consultation regarding the ‘Appia’ tokenized ecosystem roadmap (Completed)
- 2027: Introduction of ‘immediate settlement finality’ within the Eurosystem DLT platform and extended Pontes operating hours
- June 2027: T2S night-time settlement process overhaul complete
- October 11, 2027: Eurozone transitions to T+1 securities settlement
- 2028: Transition of Pontes to 24/7/365 operation and final release of the Appia blueprint
The ‘Appia’ Project and Public-Private Collaboration
Cipollone introduced the ‘Appia’ project as a long-term vision to establish standards for the future European financial ecosystem. By positioning central bank money as the ‘anchor of trust,’ Appia aims to link the entire post-trade lifecycle—issuance, trading, clearing, settlement, custody, and asset management—into a single integrated digital environment.
On October 28, 2026, the day before his speech, the ECB published the results of a public consultation on the Appia roadmap. Key participants in the private financial market expressed strong support for building an integrated tokenized ecosystem based on central bank money. Leveraging this market demand, the ECB plans to advance Appia through a Public-Private Partnership (PPP), with a goal to finalize detailed principles and a blueprint by 2028.
Coexistence with T2S and Preventing Technical Fragmentation
The ECB clarified that the introduction of innovation does not imply the immediate replacement or decommissioning of existing infrastructure. Cipollone explained that T2S will remain for the foreseeable future, with traditional T2S infrastructure and new DLT tokenization platforms coexisting to serve different functions and use cases.
Ultimately, this announcement reflects a multi-faceted reform plan to secure both the efficiency and settlement stability of European financial markets. As the ECB integrates new digital technologies, it intends to establish unified technical standards and guidelines centered on central bank money to prevent new forms of fragmentation and ensure seamless interoperability between traditional and next-generation infrastructure.
Official Sources
This article is based on the keynote speech delivered by ECB Executive Board member Piero Cipollone on October 29, 2026.