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ECB Sets Out T2S and Pontes Changes a Year Before T+1 Switch
The ECB said Europe moves to T+1 securities settlement on 11 October 2027. Piero Cipollone also set out Pontes upgrades, DLT collateral rules and the Appia tokenization roadmap.
The European Central Bank (ECB) laid out how the Eurosystem is preparing for the EU’s move to T+1 securities settlement on 11 October 2027, in a speech by Executive Board member Piero Cipollone on 29 October 2026. The date is already set in law under Regulation (EU) 2025/2075.
- T+1 cuts the standard settlement cycle for in-scope securities trades from two business days to one.
- Pontes has enabled wholesale tokenized asset settlement in central bank money since 21 September.
- The Eurosystem published a report on the public consultation on the Appia roadmap the day before the speech.
What the ECB said about the T+1 move
Cipollone spoke at an EU T+1 Industry Committee event titled “One year to T+1”. He said the shorter cycle can reduce market and counterparty risk. He also said it forces a review of post-trade processes and requires greater standardization, automation and innovation.
The ECB, together with the European Securities and Markets Authority (ESMA) and the European Commission, supports the market’s preparations for T+1. Cipollone said implementation and testing must advance in the coming months.
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TARGET2-Securities changes
The Eurosystem operates TARGET2-Securities (T2S), a platform for settling securities in central bank money. Cipollone said T2S already settles substantial volumes on a T+1 and T+0 basis.
The Eurosystem is adapting some T2S processes for the tighter timetable. Changes to the night-time settlement process are planned for June 2027. Cipollone said T2S will not disappear any time soon and will coexist with tokenized platforms.
📖 Related: Tokenized Collateral Moves Faster and Weighs the Same
Tokenization: collateral, Pontes and Appia
Since 30 March, the Eurosystem has accepted marketable assets issued in central securities depositories using distributed ledger technology (DLT) as eligible collateral for its credit operations. It is assessing whether, how and under what criteria DLT-based assets outside currently eligible settlement systems could become eligible.
Pontes connects market DLT platforms with TARGET Services. TPontes will extend its operating hours significantly by mid-2027 and move to 24/7/365 availability in 2028. It also plans to offer immediate settlement finality on the Eurosystem DLT platform as early as next year.
Appia explores an integrated European tokenized finance ecosystem built on common standards. It aims to deliver a blueprint by 2028. Cipollone said the consultation showed broad market support and willingness among respondents to contribute, providing a basis for a public-private partnership.
