Saudi Arabia's central bank has ended its participation in mBridge, a China-backed initiative building shared infrastructure for cross-border central bank transactions using digital currencies. The Financial Times reported that the Saudi Arabian Monetary Authority (SAMA) joined as a full participant in June 2024, completed a proof of concept, and formally exited on May 13, 2025. Citing SAMA, the paper said the central bank had intended to conclude its involvement once the proof-of-concept phase was finished. SAMA's departure underscores a recurring feature of CBDC pilots: central bank involvement is often limited to tightly scoped trials shaped by governance requirements and policy risk controls. It also comes as cross-border digital currency networks face growing geopolitical attention. mBridge was launched in 2021 by the Bank for International Settlements (BIS) Innovation Hub working with central banks from China, Hong Kong, Thailand, and the United Arab Emirates. The project aims to make cross-border payments faster and cheaper by allowing participating central banks to issue and transact in their own digital currencies on a shared ledger, rather than relying on a single stablecoin. Development continued under the BIS until October 2024, when the BIS transferred the project to participating central banks after it reached what the BIS described as a "minimum viable product" stage. The BIS has said its exit was not politically motivated, with then BIS General Manager Agustín Carstens previously warning against reading political meaning into the BIS role in such initiatives. In the US, policymakers have flagged potential strategic implications. A 2024 report by the US-China Economic and Security Review Commission said mBridge could eventually offer an alternative cross-border settlement channel for countries seeking to evade US sanctions. Alongside the mBridge debate, China has been sharpening its stance on stablecoins used in cross-border payments. In June, People's Bank of China Research Bureau director general Wang Xin called for closer monitoring of stablecoins and CBDCs in cross-border payments and for stronger international coordination, according to Cointelegraph. The comments followed Chinese restrictions targeting unauthorized issuance of renminbi-pegged stablecoins and tokenized real-world assets, including those issued by foreign entities. What comes next will hinge on whether remaining central bank participants expand mBridge beyond trials, and how US scrutiny and China's evolving monitoring agenda shape the path of cross-border digital settlement infrastructure.

The Eurosystem on Monday launched Pontes, a live settlement channel that lets banks complete tokenized-asset transactions using central bank money. The European Central Bank is also preparing to invest a small share of its own funds in tokenized securities, with those purchases expected to settle via Pontes. The launch positions the ECB both as the operator of the settlement rail and as a prospective user of it. Pontes links distributed-ledger market platforms to the Eurosystem's existing TARGET settlement services, enabling tokenized securities trades to settle in central bank money. Deutsche Bank, Santander, Société Générale and the European Investment Bank are among the first institutions to complete onboarding. DLT operators including Clearstream, Axiology, Cashlink and SWIAT have also connected. The Eurosystem expects more participants to join in the coming months. André Dragosch, head of research at Bitwise Europe, said Pontes effectively makes a "digital euro available for banks." He added that it allows institutions to settle tokenized transactions with each other while keeping central bank money as the settlement asset. The Eurosystem's 2024 DLT trials found that participants from the public and private sectors viewed access to central bank money as essential for broader adoption. Pontes is launching with a limited set of services and is expected to add functionality and extend operating hours over time. Full implementation is targeted for 2028. The ECB has not reported a completed live settlement since Monday's launch. Transaction activity will be a key indicator of whether Pontes gains traction beyond the institutions already onboarded. The ECB's planned investment program is designed to give it direct exposure to the end-to-end process it is asking financial institutions to adopt. Initial purchases are expected to focus on euro-denominated tokenized securities issued by euro-area central governments, regional governments, agencies and European supranational institutions. The ECB said using Pontes will help it build experience across trade execution, settlement, technology systems and portfolio management. The ECB has not disclosed the size of the tokenized allocation or when purchases will begin. Its Executive Board will decide the size and timing after preparatory work is completed. The ECB's own-funds portfolio was valued at €23.1 billion at the end of 2025, with government debt making up 73%. The own funds are managed separately from monetary-policy portfolios and generate income that helps cover the ECB's operating expenses. Using this portfolio would allow the ECB to test tokenized markets without turning the purchases into an interest-rate or quantitative-easing tool. Pontes is separate from Europe's consumer-focused digital euro project. The ECB plans a 12-month retail pilot beginning in the second half of 2027, involving 36 payment service providers, merchants and central bank staff. A potential first issuance is targeted for 2029, subject to the adoption of the necessary legislation. The two initiatives run on separate tracks aimed at extending central bank money into digital infrastructure. Dragosch also pointed to earlier debate over whether public blockchains could eventually play a role in the digital euro. The Financial Times reported in 2025 that European officials were considering networks including Ethereum and Solana as potential technology options as concerns grew about the expansion of dollar-backed stablecoins. The ECB said at the time it was reviewing centralized and decentralized technologies and had not made a final decision. For now, Pontes gives banks and securities platforms a way to connect tokenized issuance and trading infrastructure to central bank settlement while the retail architecture remains undecided. The Eurosystem is also expanding Pontes and developing Appia, an initiative intended to deliver a blueprint for an integrated European DLT financial ecosystem by 2028. The next test for Pontes will be transaction volume. Onboarded institutions will need to decide which tokenized securities and workflows to route through the system, while additional banks and market operators assess whether to connect in the months ahead. The size, timing and type of the ECB's first purchases will be another gauge of whether Pontes evolves from available infrastructure into a regularly used market utility.

The Eurosystem on Monday rolled out Pontes, a new settlement link that lets banks complete tokenized-asset transactions in central bank money. At the same time, the European Central Bank (ECB) said it is preparing to invest a small portion of its own funds in tokenized securities, with those trades expected to settle via Pontes. The twin steps place the ECB at the center of Europe's developing tokenized-market plumbing: it is supplying the settlement rail while also preparing to use it as an investor. Pontes connects distributed-ledger (DLT) market platforms to the Eurosystem's existing TARGET settlement services, enabling tokenized securities to settle in central bank money. An initial cohort has completed onboarding, including Deutsche Bank, Santander, Société Générale and the European Investment Bank, alongside DLT operators Clearstream, Axiology, Cashlink and SWIAT. The Eurosystem expects additional institutions to connect in the coming months. André Dragosch, Head of Research at Bitwise Europe, said Pontes amounts to a "digital euro made available for banks," allowing financial institutions to settle tokenized transactions with one another while keeping central bank money as the settlement asset. In wholesale markets, access to risk-free settlement money has been a key hurdle to moving securities onto distributed ledgers. The Eurosystem's 2024 DLT trials found both public- and private-sector participants viewed such access as critical for broader adoption. Pontes starts with a limited set of services, with more functionality and longer operating hours to be added over time. Full implementation is targeted for 2028. The ECB has not yet reported a completed live settlement since Monday's launch, leaving actual transaction activity as the next test of whether the infrastructure gains usage beyond already connected institutions. ECB prepares to buy on its own settlement rail The ECB's planned investment program extends the initiative beyond infrastructure by giving the central bank direct exposure to the trade-to-settlement lifecycle it is encouraging the market to adopt. Initial purchases are expected to focus on euro-denominated tokenized securities issued by euro area central governments, regional governments, agencies and European supranational institutions. The ECB said settling via Pontes will help it build experience across trade execution, settlement, technology systems and portfolio management. The allocation is expected to be small relative to the ECB's broader holdings. The central bank's own-funds portfolio was valued at €23.1 billion at the end of 2025, with government debt representing 73%. The ECB has not disclosed the size of the tokenized allocation or when purchases will start, saying its Executive Board will decide both after preparatory work is completed. The own-funds portfolio is managed separately from monetary-policy portfolios and generates income that helps cover the ECB's operating costs. Using it allows the ECB to test tokenized markets without turning the purchases into an interest-rate or quantitative-easing tool. Pontes also arrives well ahead of Europe's retail digital euro. The ECB plans a 12-month consumer pilot starting in the second half of 2027, involving 36 payment service providers, merchants and central bank staff. A first issuance is targeted for 2029, contingent on passage of the necessary legislation. Even so, the parallel tracks signal a broader effort to embed central bank money more deeply into digital market infrastructure. Related context and next milestones Dragosch pointed to earlier debate over whether public blockchains could eventually play a role in the digital euro. The Financial Times reported in 2025 that European officials were considering networks including Ethereum and Solana as potential technology options amid growing concern over the spread of dollar-backed stablecoins. The ECB said at the time it was evaluating both centralized and decentralized approaches and had not made a final choice. For wholesale markets, Pontes offers a near-term route without waiting for the retail architecture to be finalized. Banks and securities platforms can begin linking tokenized issuance and trading systems to central bank settlement while the Eurosystem expands Pontes and develops Appia, a broader initiative aimed at producing a blueprint for an integrated European DLT financial ecosystem by 2028. The commercial proof point now shifts to volume. Institutions already onboarded must decide which tokenized instruments and workflows to route through Pontes, while additional banks and market operators consider connecting in the months ahead. The ECB's eventual allocation—its timing, size and instrument choice—will be another key signal of how quickly Europe's new settlement rail moves from available infrastructure to routine market use. Source: CryptoSlate

The Bank of Korea (BOK) has started testing round-the-clock settlement for Korean won transactions aimed at foreign investors, a move designed to remove constraints tied to domestic banking hours. Trial operations for the BOK Won International Wire Network began on Sept. 21, with full-scale rollout planned for January 2027. Four local banks are participating in the initial phase: KB Kookmin Bank, Woori Bank, Hana Bank and Shinhan Bank. Yonhap reported the test kicked off at 9 a.m. local time, operating until 9 a.m. on the next business day, while remaining closed on weekends and public holidays. Overseas banks are expected to come on board after the official launch. The pilot is part of South Korea's broader push to open its foreign exchange infrastructure to international institutions. The BOK's 2025 Payment and Settlement Systems Report said operating hours for BOKWire+ were set to be extended in March 2026 and pointed to additional work on BOKWire Int and adoption of ISO 20022 messaging standards, aimed at reducing cross-border settlement frictions and aligning infrastructure with expanded FX trading hours. South Korea's domestic FX market moved to 24-hour trading on July 6, according to the finance ministry. While the reform broadened trading access, settlement still required upgrades. The new network is intended to close that post-trade gap by enabling won settlement across global business hours. Regulatory groundwork for offshore won business was laid on Sept. 16, when the Ministry of Finance and Economy amended rules to create "Registered Foreign Institutions for KRW Business" (RFIKs). Under the framework, registered institutions can open omnibus accounts with domestic FX banks and settle won transactions via BOKWire Int. Eligibility is limited to foreign nonresidents, and RFIKs must verify customer status and report major transactions to authorities. The revised rules also allow unlimited won borrowing from domestic banks through overdrafts for settlement purposes, a measure the ministry said was aimed at reducing settlement risk. The amendments followed a public consultation held from Aug. 24 through Sept. 3 and a regulatory review completed by the Office for Government Policy Coordination. The structure enables foreign investors to transact through registered institutions outside South Korea, reducing reliance on accounts opened directly with Korean financial institutions. The ministry tied the changes to its July 19 Roadmap for KRW Internationalization, which targets broader overseas holding, trading and settlement of the currency. The offshore won settlement network itself does not use blockchain technology or a central bank digital currency. In parallel, the BOK has been exploring tokenized settlement through separate initiatives. The Bank for International Settlements said Project Agorá carried out real-value testing in July 2026, processing about 800,000 Swiss francs across 17 transaction scenarios using tokenized central bank reserves and commercial bank deposits. The won was included alongside five other currencies. The BIS said the project involved 28 financial institutions and central banks, with average settlement taking about 80 seconds. Separately, the BOK has developed Project Hangang around a wholesale central bank digital currency infrastructure. In its first phase, tokenized commercial bank deposits were tested on a unified ledger. The central bank said in March that a second live phase was planned for late 2026, following a review of lessons from the 2025 pilot. With rules already amended to support offshore won business, the government said registered institutions will operate under prudential oversight and transaction monitoring. The key milestone remains the January 2027 start of full offshore settlement operations, after which foreign banks are expected to join the network. Authorities said they will monitor transactions and compliance as offshore won activity expands through the RFIK framework.

Agora said it has received preliminary conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a U.S. national trust bank, a step that would place part of the stablecoin issuer's activities under federal oversight. Under the proposal, the new bank would support portions of Agora's stablecoin, custody, and transaction operations. It cannot begin business until the company satisfies OCC requirements, including standards for capital, liquidity, and governance. Agora currently issues its AUSD stablecoin through Agora Bermuda Limited under Bermuda's digital-asset framework. The token is backed by short-term U.S. Treasuries and other liquid assets. The proposed U.S. trust bank would also offer fiduciary investment advisory services for institutional clients. Agora indicated the U.S. entity would remain separate from its Bermuda issuer rather than replace it. The OCC's conditional approval comes as more crypto firms pursue national trust charters to bring certain lines of business under federal supervision. Block has also sought approval for Builders Bank & Trust, aimed at Bitcoin and stablecoin custody. The OCC has listed applications from Payward, Catena Trust Bank, and EDX Trust. Comptroller Jonathan Gould said the agency has received 40 charter applications since President Donald Trump took office, including 23 tied to digital assets. Agora still must meet the OCC's conditions before it can receive final authorization to open the bank. Disclaimer: This content is provided for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for any losses arising from the use of any products or services referenced. Readers should exercise caution before taking action related to the company.

The European Central Bank (ECB) plans to allocate a portion of its funds to purchases of tokenized securities, giving the institution direct exposure to distributed ledger technology and how digital instruments function across financial markets. The ECB said initial investments will focus on euro-denominated securities issued by governments, agencies, and European supranational institutions. The holdings will sit in its non-monetary policy portfolio, which is managed to generate income that helps cover operating expenses. Settlement will take place via Pontes, the Eurosystem's platform for tokenized assets that uses central bank money. The ECB created Pontes as part of its work to adapt central bank money to digital financial markets. Through hands-on participation, the ECB intends to assess key elements of tokenized-market activity, including trading, settlement, portfolio management, and supporting systems. The initiative is also positioned to build internal expertise as tokenization expands across Europe, reducing reliance on external market participants for insight into the investment process. The ECB has not disclosed the size of the investment program or when purchases will begin. Its Executive Board will set parameters after reviewing market conditions and tokenized-issuance activity. The project also ties into Appia, a Eurosystem initiative aimed at developing a blueprint for Europe's tokenized financial ecosystem. The ECB indicated that investing directly could help ensure infrastructure choices remain aligned with market needs. Disclaimer: This information is provided for informational and educational purposes only and does not constitute financial advice. The publisher is not responsible for losses arising from the use of any content, products, or services referenced. Readers should exercise caution before taking any action related to the companies or services mentioned.

Vladimir Chistyakin, a deputy governor of the Central Bank of Russia, said the country's cryptocurrency industry could meet the requirements for legal operation by the end of 2026 as regulation advances on schedule. He noted that key secondary rules are now being drafted, with final adjustments to internal regulations expected to be completed by end-2026. In August, President Vladimir Putin signed legislation creating a legal framework for digital currencies and digital rights, while payments in Bitcoin remain banned. The central bank has authorized public trading of Bitcoin on Russian crypto exchanges. Non-accredited investors can buy Bitcoin and other assets worth up to 300,000 rubles (about $3,582) via a single intermediary, while accredited investors are not subject to this cap. Russia's largest bank, Sberbank, plans to roll out Bitcoin and cryptocurrency wallets and digital-asset custody services in December, projecting first-year transaction volumes of 4 trillion rubles (around $47 billion).

US Treasury Secretary Scott Bessent said Iranian airlines will be effectively barred from operating internationally starting Sept. 23, warning that any country or company that continues to service them could lose access to the US dollar system. "If they land, you cannot provide them with fuel, you cannot provide them with landing services, you cannot sell them tickets, or you will be knocked out of the dollar system," Bessent said. The threat appears to be gaining traction. Turkey is reported to be moving toward halting acceptance of Iranian airlines. The start date is notable because Iranian President Masoud Pezeshkian is scheduled to address the UN General Assembly in New York on Sept. 23, the same day the measures are set to take effect.

The European Central Bank is laying the groundwork to invest a small slice of its own funds in tokenized securities, with transactions to settle in central bank money via Pontes, a newly introduced Eurosystem service. In a statement released Monday, the ECB said the pilot purchases are intended to give the institution hands-on experience as an investor and to deepen internal capabilities in using distributed ledger technology in financial markets. Direct investment would expose the bank to the full investment process, spanning trade execution, settlement, systems, and portfolio management. The ECB said the first purchases will target tokenized, euro-denominated securities issued by euro area governments, public agencies, and European supranational institutions. The instruments are conventional securities such as bonds, but issued or recorded on a distributed ledger. Funding will come from the ECB's own-funds portfolio, a non-monetary-policy portfolio that generates income to help cover operating costs unrelated to its supervisory responsibilities. The ECB did not disclose how much it plans to invest or when buying will begin. The Executive Board will set the operational parameters and timeline after preparatory work is completed, factoring in developments in tokenized issuance and the broader tokenized financial ecosystem in Europe. Pontes forms part of a Eurosystem push to adapt central bank money for the digital era. It will run alongside Appia, an initiative aimed at developing a blueprint for a tokenized financial ecosystem in Europe. The ECB said Pontes will help market participants—including those engaged in exploratory work—enhance their offerings while preserving the anchoring role of central bank money. According to the ECB, Pontes consolidates three tested systems into a single service. It will enable settlement either with cash tokens or via the Eurosystem's T2 payment system. Its HashLink protocol is designed to synchronize asset delivery and payment, and automated processing is expected to reduce manual workload. Similar initiatives are underway across the public and private sectors. In May, JPMorgan filed for a tokenized Ethereum money market fund. In June, New York Life Investment Management launched a tokenized bond fund. Earlier this month, India began a pilot to issue and settle tokenized corporate bonds using its wholesale digital rupee.