The European Central Bank (ECB) and Danmarks Nationalbank today signed an agreement for Denmark to join the ECB’s T2 wholesale payment system and the TARGET Instant Payment Settlement (TIPS) service. This will facilitate the settlement of high-value payments in euro and Danish kroner in the T2 system and will make the Danish krone the third currency available for settlement in TIPS after the Swedish krona was included earlier this year.
Danish financial market participants have started testing both systems in preparation for the launch in April 2025. Danmarks Nationalbank already uses the T2 system for settling payments in euro and has used the TARGET2-Securities (T2S) platform for settlement of securities in both euro and kroner since October 2018. The inclusion of the Danish krone in the Eurosystem’s payment services will enable market participants in Denmark to use all three TARGET services to settle all payments and securities in their national currency and to benefit from optimised liquidity management.
“We are delighted that Denmark will use the Eurosystem’s TARGET Services platform to settle wholesale and instant payments in Danish kroner,” said ECB President Christine Lagarde after signing the agreement. “This will reinforce the integration of Europe’s financial infrastructures beyond the euro area, bring economies of scale and lay the foundation for cross-currency payments, providing tangible benefits for people in the euro area and in Denmark.”
