Wholesale Payments DLT

Definition ∞ Wholesale payments DLT refers to distributed ledger technology applications specifically developed for large-value payment transfers between financial institutions. These systems aim to streamline interbank settlements, reduce processing times, and lower operational costs. They provide a shared, immutable record of transactions among major participants. This technology offers a modern alternative to existing clearing and settlement infrastructures.
Context ∞ Central banks and commercial banks are actively experimenting with wholesale payments DLT to enhance the efficiency and resilience of national and international payment systems. Projects often focus on improving cross-border transactions and reducing settlement risk. This development represents a significant step toward modernizing core financial market functions.