Extended operating hours for RTGS under consideration by ECB - potential boost for distributed ledger technology payments and digital euro adoption
The European Central Bank (ECB) has launched a consultation on extending the operating hours of TARGET2 (T2), its main real-time gross settlement system. The consultation seeks to gather market feedback on the need for and constraints related to longer hours, with a potential timeline for changes expected in 2026.
Motivation for Extended Operating Hours
The extension is driven by growing demand for real-time settlements, increased instant payments, and broader European ambitions to enhance payment system resilience, autonomy, and support the international role of the euro. This move aligns with efforts to allow non-bank payment service providers access to T2 and TIPS, starting October 2025, creating a level playing field and fostering innovation in instant payments.
Promoting the international usage of the digital euro is another motivation for extended T2 hours. With the Instant Payment Regulation coming into force this year, expected to increase the volume of instant payments, the ECB aims to gather feedback on whether modest extensions or full 24/7 operations would best serve Europe’s evolving payment landscape.
Proposed Extensions and Timeline
On 30 May 2025, the ECB Governing Council launched a public consultation on possibly extending T2 operating hours beyond the current schedule. The consultation is open until 30 September 2025. After analyzing responses, the ECB Governing Council plans to discuss possible follow-up actions during 2026.
Some industry references discuss potential extensions approaching or reaching a 22.5-hour weekday window, moving toward a near 24/7 model to support real-time global payments. However, any implementation timeline for extended T2 hours is dependent on the consultation results.
The Digital Euro and T2 Extensions
The extension fits into the broader digital euro context, which aims to modernize payments infrastructure, increase efficiency, and support central bank money use in instant and potentially tokenized formats. The ECB's pragmatic two-track approach involving linking T2, TIPS, and Distributed Ledger Technology (DLT) platforms emphasizes enhancing settlement speed and system interoperability, which would benefit from extended operating hours.
The ECB is also working on an interim Trigger solution to initiate conventional T2 payments for the settlement of DLT transactions. Given the expectation that DLT systems are expected to operate 24/7, longer central bank money settlement times are desirable to enable Trigger payments at all hours. In the case of a central bank digital currency (CBDC), institutions would have to keep extra buffers if the central bank money settlement times do not match the operating hours of DLT systems, which is undesirable.
The Consultation Process
The consultation is intended to facilitate a dialogue rather than proposing specific changes or any timeframe for implementation. Feedback on the extension of T2 hours is requested by the end of September. The ECB encourages all interested parties to participate in this important discussion, shaping the future of European payments infrastructure.
Overseas firms already access the system in the middle of the night, with non-Euro area countries making up the majority of payments between 3am and 5am. The consultation aims to gauge what changes are desirable, ranging from smaller tweaks to operating the system 24/7/365.
In conclusion, the ECB is actively consulting stakeholders through the summer and fall of 2025 on extending T2 operating hours, with decisions and possible implementations expected in 2026. This effort is integrated with instant payment innovations, expanding non-bank access, digital euro considerations, and enhancing Europe’s payment infrastructure resilience and global euro stature.
- The extension of T2 operating hours is driven by the growing demand for real-time settlements, increased instant payments, and European ambitions to enhance payment system resilience.
- The ECB is gathering feedback on whether modest extensions or full 24/7 operations would best serve Europe’s evolving payment landscape, with an aim to promote the international usage of the digital euro.
- The consultation on extending T2 hours is open until the end of September 2025, and the ECB Governing Council plans to discuss possible follow-up actions during 2026.
- The ECB's pragmatic approach to digital euro includes linking T2, TIPS, and DLT platforms, emphasizing enhanced settlement speed and system interoperability, which could benefit from extended operating hours, especially in the context of central bank digital currency (CBDC) and Trigger solutions.
