DLT Market Structure

Definition ∞ DLT market structure refers to how distributed ledger technology shapes the organization and operation of financial markets. This involves the design and arrangement of systems, participants, and rules that govern the trading, clearing, and settlement of digital assets on blockchain or other distributed ledger platforms. It contrasts with traditional market structures by enabling peer-to-peer transactions, reducing intermediaries, and potentially offering greater transparency and efficiency. The architecture of a DLT market structure directly influences liquidity, price discovery, and risk management within digital asset exchanges.
Context ∞ Regulators globally are closely examining the evolving DLT market structure to ensure market integrity, investor protection, and financial stability as digital asset adoption grows. Discussions often focus on the interplay between centralized exchanges and decentralized protocols, as well as the need for harmonized international standards. The future development of DLT market structures will likely involve hybrid models and increasing institutional participation, demanding robust oversight.