The question in tokenisation has always been what money settles the trade. Between 8 September and 8 October 2026, three public authorities gave their answers in working systems, and a fourth published a timetable. The common thread is settlement in central bank money, or in bank money that a central bank system connects. Private tokens are not the settlement asset in any of them.
- Euro area (confirmed): the Eurosystem launched Pontes, which settles wholesale tokenised transactions in central bank money. The ECB also said it is preparing to invest part of its own funds in tokenised securities [1][2].
- Hong Kong (confirmed): the government priced around HK$20 billion of digital green bonds. Tokenised deposits were used to settle the Hong Kong dollar tranche [3].
- India (confirmed): SEBI and the RBI launched Demat 2.0. Three tokenised corporate bond issues totalling ₹1,025 crore were settled in wholesale e₹ [4][5].
- Hong Kong, planned: the 2026 Policy Address sets year-end targets for central bank digital currency (CBDC) settlement and tests of tokenised Exchange Fund Bills [6].
The Eurosystem’s Pontes
Confirmed. On 21 September 2026 the Eurosystem launched Pontes, which “enables wholesale transactions in tokenised assets to be settled in central bank money” [1]. It is the first initiative under the Eurosystem’s programme to make central bank money “fit for a tokenised future” [1].
An initial group has completed onboarding, according to the ECB’s footnote [1]:
- 13 market participants: ABANCA, BayernLB, CDC, Cecabank, Deutsche Bank, Deka Bank, DZ Bank, the European Investment Bank, KfW, Memo Bank, NRW.BANK, Santander and Société Générale. The Deutsche Bundesbank has also joined as a participant.
- Four DLT operators: Axiology, Cashlink, Clearstream and SWIAT.
Pontes will “initially offer a core set of services”. “Enhanced features and longer operating hours will be introduced gradually, with full implementation expected by 2028” [1]. Separately, the Appia initiative continues work on “an integrated ecosystem for DLT-based financial services”, with Danmarks Nationalbank and public- and private-sector stakeholders. Its goal is “a blueprint by 2028” [1].
The ECB as investor. In a second release the same day, the ECB said it “has launched preparatory work to invest a small portion of its own funds in tokenised securities” [2]. The initial focus will be on euro-denominated securities from euro area governments, agencies and European supranational institutions, settled via Pontes. The Executive Board will decide the operational details and timing later [2]. The own-funds portfolio is not a monetary-policy tool. It provides income to help fund the ECB’s operating expenses, excluding supervision [2].
Why it matters. Market participants told the Eurosystem during its 2024 trials that access to a risk-free settlement asset was crucial [1]. Pontes provides that asset. By planning to buy tokenised bonds itself, the ECB is also preparing to act as a customer of the market it is building.
Hong Kong’s fourth digital green bond
Confirmed. On 29 September the Hong Kong government announced it had priced “around HK$20 billion” of digital green bonds the day before [3]:
| Tranche | Tenor | Coupon |
|---|---|---|
| HKD 5.5 billion | 2 years | 3.80% |
| RMB 7.5 billion | 5 years | 1.65% |
| USD 200 million | 3 years | 5.023% |
| EUR 450 million | 4 years | 3.734% |
Subscription ratios ran from 1.3 to 11.3 times. The HKMA says the deal “set a new record for the largest digital bond issuance in the world” [3]. It is the fourth such issue since 2023.
The new element is settlement. Tokenised deposits, “empowered by EnsembleTX”, were used to settle the HKD tranche in the primary issue. The previous issue had already offered a tokenised central bank money option [3]. The HKMA calls this “the world’s first digital bond that integrates tokenised deposits in HKD” [3]. The platform is HSBC Orion. Clearing runs through the HKMA’s CMU, which links to Euroclear and Clearstream, and settlement is T+1. The bonds are rated AA-/Aa3/AA+ by Fitch, Moody’s and S&P [3]. “Record” and “world’s first” are the HKMA’s own claims.
India’s Demat 2.0
Confirmed. On 10 September RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey announced Demat 2.0 at the Global Fintech Fest in Mumbai [4]. Under the scheme, bonds are issued as tokens on a distributed ledger that is “owned by the depositories”. That ledger connects to the RBI’s wholesale CBDC through its Unified Market Interface. Bond and payment therefore move together (“atomic settlement”), and smart contracts pay interest and redemptions [4].
Issues so far total ₹1,025 crore [4]:
- REC: ₹500 crore from 18 investors, 7 September
- L&T: ₹500 crore from 4 investors, 9 September
- IIFL: ₹25 crore from 1 investor, 9 September
SEBI claims India is “the first country in which corporate bonds have been issued natively on a distributed ledger, with the record of ownership held by a country’s statutory depositories and the funds leg settled in central bank digital currency” [4]. That claim is SEBI’s. Later phases will add secondary trading through existing request-for-quote platforms, followed by retail access [4]. Pandey stressed that this is not a new asset class: investors keep their existing demat account and KYC [5].
Hong Kong’s year-end targets
Plans, not completed actions. The 2026 Policy Address of 16 September says the HKMA “is planning to implement central bank digital currency (CBDC) settlement and 24/7 operations under EnsembleTX by around the end of this year” [6]. The HKMA will also test tokenised Exchange Fund Bills by year’s end, covering “more than $1.3 trillion” of them. That figure is in Hong Kong dollars [6].
The government says Hong Kong-issued digital bonds took “nearly 50% of the global market” between 2025 and the first half of 2026. It plans to “regularise” digital bond issuance [6]. HKEX and the HKMA are also working on a wholesale e-HKD payment solution for after-hours derivatives trading, with “real-value transactions” targeted for this year [6].
What this does not prove
- That Pontes is complete. Full implementation is “expected by 2028” [1].
- When the ECB will buy tokenised securities. No date or amount has been set [2].
- That tokenised bonds trade more cheaply or easily. Issuance has improved, but India’s secondary trading phase has not started yet [4].
- Hong Kong’s year-end goals. They are targets in a policy speech [6].
- The “first” and “record” claims. They belong to the HKMA and SEBI [3][4].
- Any investment view on these bonds.
The Bottom Line
In a month, central bank money became usable for real tokenised deals in the euro area and India, and HKD tokenised deposits settled a government bond in Hong Kong [1][3][4]. This is the path the IMF recommended in its October chapter: tokenised securities settling in central bank money where practical. The next tests are secondary trading, longer operating hours and the ECB’s first purchases. All three are still to come.
Sources
- European Central Bank, “Eurosystem brings central bank money to tokenised finance” (press release), 21 September 2026. https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.pr260921~e754847a7b.en.html
- European Central Bank, “ECB to invest part of own funds in tokenised securities, with settlement via Pontes” (press release), 21 September 2026. https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.pr260921_1~5a011ecbea.en.html
- Hong Kong Monetary Authority, “HKSAR Government’s Fourth Digital Green Bonds Offering” (press release), 29 September 2026 (also published as info.gov.hk press release P2026092900691). https://www.hkma.gov.hk/eng/news-and-media/press-releases/2026/09/20260929-6/
- Securities and Exchange Board of India, “Successful launch of ‘Demat 2.0’ Pilot project for Tokenised Corporate Bonds,” PR No. 56/2026, 10 September 2026. https://www.sebi.gov.in/media-and-notifications/press-releases/sep-2026/successful-launch-of-demat-2-0-pilot-project-for-tokenised-corporate-bonds_104418.html
- BL Mumbai Bureau, “SEBI, RBI launch Demat 2.0 pilot for tokenised corporate bonds,” The Hindu BusinessLine, 10 September 2026. https://www.thehindubusinessline.com/markets/sebi-rbi-launch-demat-20-pilot-for-tokenised-corporate-bonds/article71452467.ece
- HKSAR Government, The Chief Executive’s 2026 Policy Address, Chapter 3 (paras 35 and 50), 16 September 2026. https://www.policyaddress.gov.hk/2026/en/chapter3.html. See also Ledger Insights’ report: https://www.ledgerinsights.com/hong-kong-plans-wcbdc-by-years-end-to-test-tokenized-government-bills/
