Cross-Border DLT

Definition ∞ Cross-Border DLT refers to Distributed Ledger Technology applied to facilitate transactions and information exchange across national borders. This system aims to improve the speed, cost-efficiency, and transparency of international payments and financial operations. It reduces reliance on traditional correspondent banking networks by enabling direct value transfer.
Context ∞ Financial institutions and central banks are exploring cross-border DLT solutions to address inefficiencies in global finance. Pilot programs often focus on wholesale payments and securities settlement, seeking to establish interoperability between different DLT platforms. Regulatory frameworks are evolving to accommodate these new methods, aiming to balance innovation with financial stability and anti-money laundering requirements.