DLT Capital Formation

Definition ∞ DLT Capital Formation refers to the process of raising capital using Distributed Ledger Technology platforms. This involves issuing and managing digital securities or tokens on a blockchain, representing ownership or debt claims. It offers new avenues for businesses to secure funding and for investors to participate in various projects. DLT can streamline the issuance, trading, and management of capital instruments.
Context ∞ DLT Capital Formation is a rapidly evolving area in financial news, particularly with the growth of security token offerings and tokenized real-world assets. Discussions often center on the efficiency gains, reduced costs, and expanded investor access provided by these digital methods. Regulators are actively reviewing and establishing guidelines for DLT-based capital raising to ensure investor protection and market integrity.