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Distributed Ledger Technology

Technical · Networks & Protocol Infrastructure · Last reviewed: September 2026

Distributed ledger technology, or DLT, is a set of technologies that allow multiple nodes or participants to share, synchronize, and update a common ledger under agreed rules.

Explanation

A distributed ledger can replicate data across several locations and use cryptographic techniques and consensus processes to establish valid updates. Architectures vary in who may participate, who can submit transactions, how consensus is reached, and whether records are organized into blocks. DLT is used in public blockchain networks as well as permissioned financial-market infrastructures.

Boundaries

DLT is the broader technology category. Blockchain is a DLT architecture that organizes ledger history through cryptographically linked blocks or equivalent ordered structures.

Why it matters

DLT provides the underlying recordkeeping architecture for many stablecoins, tokenized deposits, CBDC experiments, and tokenized financial assets.

Example

A permissioned settlement platform can use DLT among approved financial institutions without operating as a public cryptocurrency network.

Related terms

Sources

  1. Distributed Ledger Technology in Payment, Clearing and Settlement: An Analytical Framework. Committee on Payments and Market Infrastructures, Bank for International Settlements, CPMI Papers No. 157, 2017. Standard-setter analysis
  2. Blueprint for the Future Monetary System: Improving the Old, Enabling the New. Bank for International Settlements, BIS Annual Economic Report 2023, Chapter III, 2023. Institutional analysis
Methodology · definitions, cadence and source detail