The European Central Bank has signed an agreement with the Central Bank of Iceland for Iceland to join the Eurosystem’s TARGET Instant Payment Settlement system. From 2028, this will allow instant payments in Icelandic króna to be settled in central bank money through TIPS, extending the Eurosystem’s instant retail payment infrastructure to Iceland. The Icelandic króna will become the fifth currency available for instant retail payment settlement through TARGET Services. The euro, Swedish krona and Danish krone are already available in TIPS, while the Norwegian krone is also scheduled to join in 2028. TIPS enables banks and other payment service providers to offer real-time fund transfers around the clock, and TARGET Services are designed to support currencies beyond the euro.
European Central Bank2026-06-24
European Central Bank signs agreement for Icelandic króna instant settlement in TIPS from 2028 as fifth TARGET Services currency
The European Central Bank and the Central Bank of Iceland signed an agreement for Iceland to join TIPS from 2028. That will allow instant payments in Icelandic króna to be settled in central bank money and will make the króna the fifth currency available through the Eurosystem’s TARGET Services.