DLT Securities Settlement

Definition ∞ DLT securities settlement involves using distributed ledger technology to record and finalize transactions for traditional securities. This process aims to streamline post-trade activities, reducing settlement times and operational costs. By leveraging blockchain principles, it seeks to enhance transparency and reduce counterparty risk. This application of DLT can revolutionize conventional financial markets.
Context ∞ News concerning DLT securities settlement often highlights pilot projects and regulatory advancements within traditional financial institutions. Reports discuss how blockchain technology can improve efficiency in bond or equity markets. This topic is significant for understanding the convergence of traditional finance with distributed ledger innovations. It provides context for regulatory sandboxes and industry partnerships.