The European Central Bank (ECB) has launched preparatory work to invest a portion of its own funds in tokenised securities, aiming to gain practical experience with investments in this area and build institutional expertise in the use of distributed ledger technology (DLT) in financial markets. The ECB's own funds portfolio, which provides income to help fund operating expenses, will be used for these investments. The transactions will be settled in central bank money via Pontes, the Eurosystem's settlement solution for DLT transactions, which was launched on the same day as the announcement. Initial investments will focus on euro-denominated securities issued by euro area central governments, regional governments, agencies, and European supranational institutions. This move supports the Eurosystem's strategy to make central bank money fit for the digital age, alongside other initiatives such as the Appia initiative, which aims to deliver a blueprint for a tokenised financial ecosystem in Europe. By investing directly in tokenised securities, the ECB will gain first-hand experience across the full investment lifecycle, including trade execution, settlement, systems, and portfolio management activities. The ECB's Executive Board will determine the operational details and timing of the investments once the preparatory work has been completed, taking into account developments in tokenised issuances and the broader tokenised financial ecosystem in Europe.