The three settlement services of the European System of Central Banks, TARGET2, TIPS and T2S, were brought together in 2018 under the single name TARGET Services. TARGET services are the financial infrastructure services developed and managed by the Eurosystem that allow pan-European money and securities settlements to be made to accounts opened at central banks.
TARGET2-Eesti is used for monetary policy transactions and interbank payments, and also for retail transactions. Although TARGET2 provides settlement of euro payments in real time, it cannot be used for instant payments as one defining feature of instant payments is that the system providing settlement is available 24/7/365.
TIPS was launched in November 2018 and is designed to provide pan-European settlement of instant payments using central bank money 24/7/365. To achieve this goal, the Eurosystem intends to change access rights to the TIPS service so that all payment service providers that participate in TARGET2 and in SCT Inst would be able to access TIPS as from 2021. For further information: https://www.ecb.europa.eu/paym/intro/mip-online/2020/html/2011_mip_online.en.html
The TARGET2-Securities securities settlement platform is intended to harmonise securities trading in the euro area and make cross border securities trading easier, cheaper and more secure for investors. This pan-European securities settlement platform was launched in June 2015, and the Estonian branch of Nasdaq CSD joined the platform in 2017. Eesti Pank is responsible for ensuring the efficient operation and interaction of cash settlements, securities settlements and collateral management in monetary policy operations.