ECB links T+1 transition to expansion of tokenisation infrastructure

By Marcel Langevoort · 3 November 2026

Europe will move to securities settlement one day after trading, rather than two, on 11 October 2027. In his speech, Piero Cipollone places this transition to T+1 within a broader modernisation of European financial infrastructure that also encompasses tokenisation and settlement in central bank money.

According to the ECB, a shorter settlement cycle can reduce market and counterparty risks and requires greater standardisation and automation. The Eurosystem is adapting the night-time settlement process on TARGET2-Securities (T2S), with changes scheduled for June 2027. T2S already supports settlement on both a T+1 and T+0 basis.

Since 21 September, Pontes has enabled wholesale transactions in tokenised assets to settle in central bank money by connecting DLT platforms with TARGET Services. The Eurosystem intends to extend operating hours significantly by mid-2027 and introduce round-the-clock availability in 2028. It also plans to offer immediate settlement finality on its DLT platform as early as 2027. Separately, it is assessing the conditions under which DLT-based assets outside currently eligible settlement systems could be accepted as collateral.

By 2028, the Appia initiative aims to deliver a blueprint for an integrated European tokenised finance ecosystem. According to the ECB, a public consultation showed broad market support. T2S will remain in operation: existing and new infrastructures are intended to work together without creating new technological silos.

Business impact

Why does this matter for businesses?

For banks and other market participants, T+1 may prompt further automation and standardisation of post-trade processes. The ECB stresses that implementation and testing will be critical in the coming months. Meanwhile, the planned expansion of Pontes makes connectivity between DLT platforms and existing settlement infrastructure relevant to IT strategy. As T2S and tokenised platforms will coexist, interoperability may become more important than replacing existing systems. The potential expansion of collateral eligibility also warrants attention, but remains under assessment rather than constituting an approved admission of additional assets.

Sources

Original article: European Central Bank ↗ · 29/10/2026

This summary was prepared with AI assistance and reviewed by the editor.

Tags: t+1, t2s, pontes, appia, dlt

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3 November 2026

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