TARGET2

TARGET2 was the Eurosystem's large-value payment system from 2007 until it was replaced by T2 on 20 March 2023. The locked title is historical. Current operational claims must use T2, which consolidated the former TARGET2 settlement service and TARGET2-Securities cash arrangements on a new platform.

Role

T2 settles euro payments individually in central-bank money and provides liquidity-management functions. It is a real-time gross settlement system governed within the Eurosystem, including the European Central Bank. It is not a messaging network. SWIFT may carry payment messages, but messaging, correspondent relationships and final settlement are separate layers.

The system matters to statecraft because access to central-bank settlement is a financial chokepoint. Legal restrictions, eligibility decisions or payment failures can interrupt access, but T2 should not be conflated with Dollar-clearing denial, sanctions designation or correspondent-bank withdrawal. Each has a different authority and mechanism.

Current status and measurement

As at 30 July 2026, T2 is the live service and TARGET2 is decommissioned. The European Central Bank's 2025 TARGET Services Annual Report is the controlling annual source for current T2 activity. Any volume or value claim should identify the calendar year, payment category and whether ancillary-system, liquidity-transfer or other transactions are included. Participant counts must similarly distinguish direct participants, addressable institutions and branches.

The transition preserves the analytical importance of TARGET2 while preventing a category error: historical TARGET2 data cannot be presented as current T2 operations without naming the change in platform, statistical frame and reporting period.

Availability, throughput and participation should also be reported separately; none alone measures the system's strategic leverage.

Sources

1. European Central Bank, TARGET Annual Report 2023.
2. European Central Bank, Successful launch of new T2 wholesale payment system, 21 March 2023.
3. European Central Bank, TARGET Services Annual Report 2025.
4. European Central Bank, T2 facts and figures (accessed 30 July 2026).