ECB outlines three models for putting central bank money onchain - The Block

The European Central Bank has outlined three possible models for settling transactions in central bank money on distributed ledger technology, according to The Block. The proposals address a structural gap in tokenized finance: while securities and other assets are increasingly issued onchain, final settlement still largely depends on conventional central bank infrastructure.

Each model represents a different way of connecting that onchain activity to central bank money, though the ECB has not signaled which approach it favors. The distinction matters because the design chosen would shape who has access to settlement, how much the existing banking system is involved, and how quickly transactions finalize.

For markets, the significance is less about any single announcement than about direction. Central banks are moving from studying tokenization to designing the plumbing that would support it. What to watch next: whether the ECB narrows its options into a pilot, how commercial banks respond, and whether other major central banks align with or diverge from its chosen model.