DLT bonds (often called Distributed Ledger Technology bonds or blockchain bonds) are debt securities that are issued, recorded, and/or managed using distributed ledger technology instead of traditional centralized systems.

A DLT bond is a bond whose lifecycle (issuance, ownership tracking, settlement, or servicing) is handled on a blockchain or distributed ledger.

Key features

• Digital issuance — created and registered on a blockchain

• Tokenized ownership — investors hold digital tokens representing the bond

• Faster settlement — can enable near-instant clearing

• Transparency — transactions are recorded on an immutable ledger

• Programmability — coupons and redemptions can be automated via smart contracts