ECB Selects Nexi and Deutsche Telekom to Power Digital Euro Connectivity

The European Central Bank has selected a consortium of Nexi and Deutsche Telekom to provide the critical network infrastructure for the digital euro. This ten-year agreement establishes the backbone for the future currency's pilot phase, ensuring secure connectivity between central banks, payment service providers, and the core digital euro platform as Europe moves toward a sovereign digital payment ecosystem.

What was announced

The European Central Bank (ECB) has concluded its negotiated public procurement procedure, selecting Nexi, in a temporary grouping with Deutsche Telekom, as a provider of Network Service Provider (NSP) Connectivity for the digital euro. Under this agreement, the consortium will specifically provide the NSP services required to support the digital euro pilot project. This follows a competitive tender process to identify contractors capable of delivering secure, reliable, and high-performance connectivity for the proposed central bank digital currency.

The partnership is tasked with implementing a high-performance network designed to interconnect the data centers hosting the Digital Euro Service Platform (DESP). This infrastructure is essential for allowing external participants, including Payment Service Providers (PSPs) and National Central Banks, to access the platform securely. The joint solution includes a connectivity and mediation platform intended to facilitate the end-to-end exchange of digital euro transactions across the entire ecosystem.

The architecture is engineered for high scalability and elasticity, allowing the network to adjust resources based on transaction volumes and peak usage periods. This ensures the smooth delivery of services to end-users as the project evolves. The service agreement is set for a total duration of ten years from the official start date of the contract. By securing this role, the grouping becomes a foundational pillar for the operational launch of the digital euro, providing the secure and resilient connectivity required for a central bank digital currency.

"The ECB’s decision to award the temporary grouping Nexi and Deutsche Telekom one of the two digital euro connectivity contracts represents an important milestone for our Group and further confirms Nexi’s role as a strategic infrastructure partner in the European payments’ ecosystem. The digital euro is a key initiative for the future of payments and for strengthening Europe’s digital sovereignty"

Bernardo Mingrone, CEO of Nexi Group

The companies involved

Nexi is a major European paytech firm that has established itself as a strategic infrastructure partner within the continent's financial ecosystem. The company has a significant presence across the euro area, providing technology and services to banks, businesses, and institutions. With a history of supporting large-scale digital payment transformations, Nexi operates as a pan-European entity with deep local market expertise and a focus on driving the evolution of digital payments.

Deutsche Telekom joins the grouping as Europe’s largest telecommunications company. The firm has a long history of providing mission-critical connectivity and digital services to governments and public sector institutions. Its involvement in high-security projects, such as the European quantum communication infrastructure and IRIS², highlights its role in building resilient digital infrastructure for European strategic autonomy and protecting institutional data.

The European Central Bank (ECB) serves as the central institution of the Eurosystem, managing the euro and conducting monetary policy for the euro area. The ECB is currently leading the digital euro initiative to provide a public digital form of money. This procurement process is part of its broader effort to ensure the future currency is supported by secure, high-performance, and sovereign European technology.

What FF News has reported before

FF News has followed the European Central Bank’s digital and cross-border initiatives closely, recently reporting on how the ECB Explores TIPS and Pix Interlinking to Revolutionize Europe-Brazil Cross-Border Payments. The central bank's infrastructure developments were also highlighted when Xryma Plc Goes Live on ECB T2 Network for Instant Cross-Border Euro Payments.

In the realm of tokenisation, FF News covered how the Eurosystem Launches Pontes to Settle Tokenised Assets in Central Bank Money. Furthermore, Nexi’s ongoing expansion in the merchant services sector was recently documented in Nexi and ReFiBuy Partner to Launch Agentic Commerce Optimization for European Merchants, illustrating the firm’s active role in evolving European commerce through technological partnerships.

What this means

This selection marks a decisive shift from the conceptual phase of the digital euro to the construction of its physical and digital reality. By awarding a ten-year contract, the ECB is signaling a long-term commitment to a specific architectural framework, placing immense pressure on non-selected infrastructure providers to find relevance in a shifting landscape. The choice of a European consortium underscores the political drive for "digital sovereignty," potentially sidelining global cloud and network giants. However, it raises significant questions about the interoperability of this bespoke network with existing private payment rails and how quickly commercial banks can integrate with the Digital Euro Service Platform without incurring prohibitive costs.