Compliance-First DLT

Definition ∞ A Compliance-First DLT is a Distributed Ledger Technology platform constructed with regulatory requirements as a primary consideration from its initial design. These platforms incorporate features such as identity verification, transaction monitoring, and access controls to satisfy anti-money laundering and know-your-customer standards. The architecture prioritizes adherence to legal and financial regulations, rendering it suitable for institutional use. Such DLTs seek to bridge the divide between traditional finance and decentralized technology.
Context ∞ News often discusses Compliance-First DLTs in the context of institutional interest in blockchain technology, especially in regulated sectors like banking and capital markets. Regulatory bodies frequently review these platforms as possible solutions for managing digital assets within existing legal frameworks. The creation and deployment of these DLTs are considered vital steps toward broader mainstream acceptance of blockchain applications.