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

The European Central Bank has outlined three possible models for placing central bank money onchain, according to The Block. The frameworks differ in how central bank liabilities would be represented and settled on distributed ledger infrastructure, though the ECB has not indicated that any single model has been selected for implementation.

The development matters because tokenized asset markets currently lack a settlement asset backed directly by a central bank. Stablecoins and commercial bank deposits fill that role today, but they carry issuer and credit considerations that central bank money does not. A workable onchain central bank settlement layer could therefore shape how tokenized bonds, funds, and other digital instruments are traded and settled in Europe.

For market participants, the key points to watch are which model gains traction, the timeline for any pilot or production decision, and how the framework interacts with existing euro payment systems and broader ECB digital euro work. Until an official decision is made, the models remain design options rather than a confirmed direction.