Distributed ledger technology (DLT)* has existed for more than a decade. For nearly as long, advocates have argued either that this technology could be used by financial institutions to radically simplify operations or that its decentralized capabilities would
enable an entirely new financial system, wherein capital could flow without traditional intermediaries. DLT’s detractors –perhaps just as numerous – have pointed out challenges in both of these visions, stemming from the potential costs of transformation, the capital markets’ reliance on relationships of trust and the existence of other technologies that might be better suited for certain uses. In this context, firms have invested heavily in DLTefforts, with a wide range of strategic motivations.