ESM is first European supranational issuer to settle DLT- based bond issuance on Eurosystem’s Pontes platform with Bundesbank and Clearstream

The European Stability Mechanism (ESM), the Deutsche Bundesbank, and Clearstream are participating in the first digital bond issuance by a European supranational issuer to be settled through the Pontes platform. Pontes is the Eurosystem platform for settling wholesale financial transactions using distributed ledger technology (DLT) directly in central bank money. The transaction marks the transition of Europe’s wholesale digital financial infrastructure from pilot projects to live deployment.

The transaction involves a first-time digital ESM benchmark bond of €1 billion. The Bundesbank supports the issuance as the issuing and paying agent and has been onboarded to Pontes as a market participant. Clearstream acts as the Pontes Market DLT Operator. It creates and manages the bond in digital form on the Clearstream Digital Infrastructure and enables delivery-versus-payment (DvP) settlement of the bond on its D7 DLT tokenised securities platform with the cash leg settled via Pontes’ directly in TARGET (T2), the Eurosystem’s existing market infrastructure for high-value payments in central bank money.

DZ BANK and Société Générale act as advisory banks.

Connecting digital and traditional infrastructures

The issuance combines digital technology with the existing legal framework, infrastructure, and operating standards of European capital markets. Clearstream’s hybrid model allows the bond to move from the D7 DLT environment to the traditional market infrastructure. There, it can be settled via the Eurosystem´s existing TARGET2-Securities (T2S) service.

The benchmark bond is expected to be listed on the Luxembourg Stock Exchange (LuxSE) and is expected to be eligible as collateral for monetary policy transactions in the Eurosystem Collateral Management System. It is also expected to be used as eligible collateral at Eurex Clearing and to be included in general collateral baskets at Eurex Repo. These features support secondary-market liquidity and access for a broad range of investors.

Pierre Gramegna, Managing Director of the European Stability Mechanism said:
“This benchmark bond issuance by the ESM marks an important milestone for Europe’s digital financial markets. The ESM’s mandate is to safeguard the financial stability of the euro area. The ESM supports innovation where it strengthens trust, efficiency, and resilience. Pontes embodies Europe’s capacity to develop trusted and innovative payment infrastructure, positioning Europe at the forefront of digital finance. This will strengthen the international role of the euro and deepen Europe’s capital markets.”

Joachim Nagel, President of the Deutsche Bundesbank, said:
“The ESM's issuance of a DLT-based bond, with the corresponding cash settlement carried out via Pontes, is an important step towards integrating distributed ledger technology (DLT) into Europe’s financial market infrastructure. It demonstrates the potential of DLT to make securities issuance and settlement more efficient and will strengthen the European capital market. The Bundesbank is proud to support the ESM in its project.”

Stephanie Eckermann, Member of the Executive Board of Deutsche Börse Group and Chairwoman of Clearstream said:
“With the launch of Pontes, wholesale central bank money transactions have become an operational reality and an important part of processing securities on distributed ledgers. The Clearstream Digital Infrastructure combines digital asset capabilities with trusted international capital market infrastructure at scale.”

About Pontes
Following the Eurosystem’s exploratory work in 2024, the European Central Bank and the euro area national central banks launched Pontes on 21 September 2026.

Pontes enables market participants to settle wholesale financial transactions recorded on distributed ledgers directly in central bank money. It connects distributed-ledger market infrastructures, including the Clearstream Digital Infrastructure, with central bank money. In this way, it supports safe digital settlement and the development of a European digital wholesale ecosystem.

About the European Stability Mechanism
The European Stability Mechanism (ESM) is an intergovernmental institution created in 2012 to safeguard financial stability in the euro area. It provides financial assistance to its Members facing severe financing problems, while supporting crisis prevention through precautionary financial assistance instruments and monitoring risks to financial stability. The ESM raises funds in the capital markets by issuing bonds and other debt instruments to finance financial assistance. Its shareholders are the Member States of the euro area. The ESM has a maximum lending capacity of €500 billion.

To learn more about the ESM, visit www.esm.europa.eu or follow us on LinkedIn and X.

About the Deutsche Bundesbank
The Deutsche Bundesbank is the central bank of the Federal Republic of Germany and an integral part of the Eurosystem. The Bundesbank’s core responsibility is Eurosystem monetary policy. Other core responsibilities include safeguarding financial stability, contributing to banking supervision, cashless payments and cash operations.

To learn more about the Bundesbank, visit www.bundesbank.de or follow us on LinkedIn.

About Clearstream
Clearstream is the innovative and trusted post-trade business for the global markets. It runs the leading securities and funds servicing ecosystems of tomorrow.

The company operates the German and Luxembourg central securities depositories and an international central securities depository for the Eurobonds market. With 23 trillion Euros in assets under custody, it is one of the world’s largest settlement and custody firms for domestic and international securities.

It also delivers premier fund dealing, distribution, digital and data services, covering over 55 fund markets worldwide. Clearstream’s Digital Infrastructure is hybrid by design, maintaining existing operations alongside new digital capabilities.

Clearstream is part of Deutsche Börse Group, an international exchange organization and provider of innovative market infrastructures.
To learn more, visit us at www.clearstream.com or connect via LinkedIn.

Media contacts

European Stability Mechanism
Juliana Dahl
Phone: +352 621 579 062
Email: j.dahl@esm.europa.eu

Deutsche Bundesbank
Annette Grüttner
Phone: +49 (0)69 9566 37460
Email: annette.gruettner@bundesbank.de

Clearstream
Tabea Behr
Phone: +49 (0)69 2 11-13 016
Email: tabea.behr@deutsche-boerse.com