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ECB unveils tokenized finance roadmap as Europe pushes to reduce reliance on foreign infrastructure

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ECB unveils tokenized finance roadmap as Europe pushes to reduce reliance on foreign infrastructure

The European Central Bank on Wednesday unveiled the timeline for the eurozone’s initiative to shape the development of a tokenized wholesale financial ecosystem based around the single currency and ensure the euro’s continued relevance as an international currency.

The strategy comprises Pontes, a distributed ledger technology (DLT) layer for transactions seen debuting in the third quarter, and Appia, which will “focus on working with the market to develop an entirely innovative and integrated financial market ecosystem embracing tokenisation and DLT,” the bank said in a post on its website.

Appia is the heart of the strategy and is planned to run through 2028, when the Eurosystem — the monetary authority comprising the ECB and euro-using nations’ central banks — plans to publish a blueprint outlining its vision for a tokenized financial ecosystem. It is designed to explore the long-term architecture of a tokenized financial system, including infrastructure, governance and standards.

“The initiative seeks to foster a more integrated, competitive and innovative European payments and securities environment, strengthening Europe’s strategic autonomy and resilience, and ensuring the euro’s continued relevance as an international currency,” the statement said.

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European policymakers have increasingly framed financial infrastructure as a geopolitical issue, warning that reliance on non-European payment networks and dollar-centric financial systems exposes the bloc to external pressure. An analysis for the European Parliament last year found Europe’s dependence on foreign payment networks represented a “structural vulnerability” for its financial sovereignty and could become a source of geopolitical leverage.

The project is also part of the Eurosystem’s broader push to adapt financial infrastructure to the rise of distributed ledger technology, or blockchains, which allows financial assets such as bonds, funds and securities to be represented as digital tokens on shared networks.

“Appia is about building a road from today’s financial system to tomorrow’s tokenized markets, firmly grounded in central bank money,” ECB Executive Board member Piero Cipollone said in a statement.

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Crypto World

Bitcoin ETFs Will Be Bigger Than Gold ETFs, Says ETF Analyst

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Bitcoin ETFs Will Be Bigger Than Gold ETFs, Says ETF Analyst

Spot Bitcoin exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management (AUM) as investor demand expands beyond the traditional “digital gold” narrative, according to ETF analyst James Seyffart.

“There are just more use cases of why somebody would put a Bitcoin ETF in a portfolio,” Seyffart said on the Coin Stories podcast published to YouTube on Friday. He pointed to Bitcoin’s (BTC) role as digital gold, a store of value, a portfolio diversifier, and a form of digital capital and property, adding that the market also views Bitcoin as a “growth risk asset.”

Seyffart explained that Bitcoin has “all these different ways” of being viewed, while gold only has “one of those things.”

“Our view is that Bitcoin ETFs will be larger than gold ETFs,” he added.

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Bitcoin ETFs are a “hot sauce” in the portfolio

“There are so many people that could use it. They could be viewing it to put in their portfolio because they want to bet on like a growth and liquidity trade,” he said. “It can be hot sauce in a portfolio in that way,” he added.

Bloomberg ETF analyst James Seyffart spoke to Natalie Brunell on the Coin Stories podcast. Source: Coin Stories

Bitcoin is often compared to gold due to its limited supply and perceived role as a hedge against monetary debasement. 

US-based gold ETFs recorded net outflows of $2.92 billion in March, while US spot Bitcoin ETFs attracted $1.32 billion in net inflows over the same period.

Gold and BTC have declined over the past 30 days

The largest US gold-backed ETF, GLD, recorded a $3 billion outflow on Mar. 4, the largest daily withdrawal in more than two years.

On Mar. 19, Cointelegraph cited data from the Bank for International Settlements (BIS) showing retail gold purchases have tripled over the last six months, while Wall Street selling has accelerated over the past four months.

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Related: Bitcoin ‘done’ with 85% crashes, says Cathie Wood amid new $34K target

Despite the divergence in ETF flows, both assets have moved broadly in tandem in recent weeks.

Bitcoin is trading at $66,918 at the time of publication, down 8.07% over the past 30 days, according to CoinMarketCap. Meanwhile, gold is trading at $4,676, down 8.25% over the past 30 days, according to GoldPrice data.

In December 2025, Fidelity Digital Assets analyst Chris Kuiper said that, “historically, gold and Bitcoin have taken turns outperforming. With gold shining in 2025, it would not be surprising if Bitcoin takes the lead next.”

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