Denmark Becomes First Non-Euro Currency on TARGET as DKK Migration Completes

Danmarks Nationalbank completed the migration of Danish krone payments to TARGET Services during Easter 2025, making the DKK the first non-euro currency to handle both payments and securities transactions on the pan-European settlement platform. The TARGET DKK project, initiated in early 2021, was delivered under budget.

Technical Achievement

The migration moved Denmark's RTGS settlement from the national Kronos2 system to the ECB's TARGET Services infrastructure. DKK now settles alongside EUR on the same platform, enabling straight-through processing for cross-currency payments within the Eurosystem. The migration covered both payment settlement (T2) and securities settlement (T2S).

Model for Nordic Convergence

Denmark's successful migration validates the multi-currency TARGET model and directly influences Nordic neighbours. Norway's Norges Bank entered formal negotiations with the ECB in February 2025 to migrate NOK settlement to T2, with implementation expected over approximately five years. Sweden's Riksbank has also decided to negotiate T2 migration for SEK. All three non-euro Nordic central banks are converging on the Eurosystem platform.

What This Means

This is a landmark event in European payment infrastructure. TARGET was designed for euro settlement; extending it to non-euro currencies transforms it from a eurozone system into a genuinely pan-European settlement platform. If Norway and Sweden follow Denmark, the vast majority of European RTGS settlement - regardless of currency - will run on a single shared infrastructure, reducing operational complexity and enabling more efficient cross-border payments.

Sources: Danmarks Nationalbank