Definition ∞ Capital Market DLT refers to the application of Distributed Ledger Technology within traditional capital markets. This involves using blockchain-like systems to record and process financial instruments such as stocks, bonds, and derivatives. The objective is to enhance efficiency, transparency, and security in these markets.
Context ∞ Reports on Capital Market DLT provide context for understanding the modernization efforts within the global financial system. News often highlights pilot programs, regulatory sandboxes, and collaborations between financial institutions and technology providers exploring DLT solutions. This development signals a significant shift in how securities are issued, traded, and settled.