DLT Moves from Sandbox to Mainstream Infrastructure
This week, the conversation around Distributed Ledger Technology (DLT) has decisively shifted. The question is no longer if DLT will integrate into mainstream finance, but how fast and how broadly.
🌍 Global Trends: Institutionalising DLT
The momentum is now coming from the top. The Bank of England (BoE) recently published a strategy paper emphasizing that DLT—alongside AI and quantum computing—is one of the “cross-cutting technologies” with the potential to reshape the UK economy.
In capital markets, this is already in motion: a recent report from the GFMA showed that digital asset tokenisation and DLT-based securities issuance are clearly moving beyond the pilot phase.
🚀 New Use-Cases Across Sectors
Two major stories this week exemplify how DLT is being bolted into core financial infrastructure:
- Clearstream & Google Cloud: Clearstream (part of Deutsche Börse Group) launched its “D7 DLT” tokenised-securities platform. Built in partnership with Google Cloud, it enables issuers to access intraday funding and issue commercial paper using DLT.
- Eurosystem’s “Project Pontes”: The Eurosystem selected a new “Project Pontes” market-contact group, which includes national treasuries like France and Slovenia, to advance DLT-based wholesale settlement in central-bank money.
These use-cases show DLT is expanding rapidly beyond the “crypto story” and into big-ticket financial plumbing.
📜 Legislative & Regulatory Updates
As adoption grows, regulation is intensifying. In the UK, the Financial Conduct Authority (FCA) is examining foundational technologies like DLT under its Smart Data Accelerator programme as part of its open-finance roadmap.
Meanwhile, in the EU, proposals tied to the DLT Pilot Regime are being updated. This move is designed to enable a more scalable issuance of tokenised securities. For business leaders, this means regulatory design must now be a core part of any technology strategy.
🔍 Fraud & Myth-Debunking
It’s crucial to remain clear-eyed about DLT’s limits. A new report from UK Finance showed that authorised-push-payment (APP) fraud in the first half of 2025 rose 12% year-on-year to £257.5 million.
Why does this matter for DLT? Part of DLT’s promise is enhanced transparency and auditability. However, infrastructure alone doesn’t eliminate fraud. The myth that “DLT can stop fraud” is dangerous; controls, governance, and data integrity remain essential.
🌱 Societal Applications & Positive Impact
DLT’s potential is not just about finance. The same BoE strategy paper emphasizes DLT’s role in driving productivity and modernising infrastructure responsibly.
In parallel, educational initiatives like the EU’s DLT4ALL programme are helping entrepreneurs and students apply DLT skills to fields like supply-chain traceability and property rights. There is a rising expectation that DLT projects carry not just commercial value, but also broader social utility.
Bottom Line for Leaders
DLT is moving out of sandbox mode and into real-world infrastructure. The winners will be those that combine technology with governance, regulation readiness, and societal context. Neglecting any of these layers is a strategy that risks being disrupted.