DLT Token

Definition ∞ A DLT token is a digital asset issued on a Distributed Ledger Technology platform, such as a blockchain. These tokens represent a wide range of assets, rights, or utilities, including cryptocurrencies, security tokens, or utility tokens. They derive their value and functionality from the underlying DLT, which ensures their immutability, transparency, and transferability. DLT tokens are fundamental components of decentralized applications and the broader digital economy.
Context ∞ The discussion surrounding DLT tokens in crypto news frequently centers on their classification, regulatory treatment, and diverse applications across various industries. A key debate involves distinguishing between utility tokens, security tokens, and other digital asset types for legal and investment purposes. Critical future developments include the maturation of regulatory frameworks and the increasing institutional adoption of DLT tokens for purposes beyond speculative trading, such as real estate or intellectual property representation.