TARGET2-Securities

The pilot is planned to start in the second half of 2027 and run for 12 months. Settlement will flow through the Eurosystem's TARGET infrastructure.

ECON approved the PSD3 and PSR final compromise texts on May 5, clearing the last committee hurdle before a full Parliament plenary vote expected during the May 18-21 session. The legislation replaces PSD2 and applies 21 months after Official Journal publication, likely around March 2028.

The approval sends both texts to plenary for a final simple-majority vote expected later in May, with Official Journal publication anticipated by September 2026 at the latest, starting the 18-month countdown to PSR application and PSD3 transposition.

The final legislative texts for the EU payment services overhaul passed a key Council hurdle on April 22, 2026, with parliamentary committee and plenary votes expected in May. Official Journal publication is targeted for mid-2026, starting the 18-month clock for PSR general application.

The European Parliament pushed back the key committee vote on digital euro legislation by seven weeks to June 23, 2026. ECB Executive Board member Piero Cipollone said the delay does not threaten the project timeline. He emphasized that legislation must be completed before year-end to support a 2029 issuance target.

Internal splits among European Parliament factions over the digital euro's online functionality threaten to delay the regulation's progress through committee. The disagreement between proponents of the European Commission's dual online and offline design and advocates of a more limited offline-only approach leaves the ECB's 2027 issuance target dependent on political resolution in the months ahead.

EU Regulation 2024/886 has produced its first concrete outcome in European payment infrastructure after a non-bank institution completed direct integration with the T2 large-value settlement platform. Paysera, which processed 27.6 million transfers worth EUR 23.3 billion last year, will no longer need to route euro payments through intermediary banks.

The change follows EU Regulation 2024/886, which entered into force in October 2025 and extended T2 access rights to non-bank financial institutions. Paysera processed 27.6 million transfers totalling EUR 23.3 billion in 2025.

Released on March 31, the document addresses wholesale through cross-border payment domains, establishes the Eurosystem's stance on tokenised asset settlement, and signals stronger institutional backing for account-to-account retail rails.

In a related speech in Riga on 1 April 2026, ECB Executive Board member Piero Cipollone reported that two-thirds of euro area card transactions operate under non-European business rules.