DLT Investment Chain

Definition ∞ A DLT investment chain describes the sequence of processes and entities involved in managing and executing investments using Distributed Ledger Technology. This chain includes asset tokenization, trading, settlement, and custody, all facilitated by blockchain or other DLT systems. It aims to increase efficiency, reduce costs, and enhance transparency in financial markets. The entire process is designed to minimize intermediaries and improve transaction speed.
Context ∞ The DLT investment chain is a focal point for institutional adoption of blockchain technology, particularly in traditional finance. News often reports on pilot programs and partnerships between financial institutions and DLT providers to streamline various investment operations. Regulatory clarity and interoperability with existing financial infrastructures remain significant challenges. Observing advancements in this area indicates the maturation of digital asset markets.