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GLOSSARY · BLOCKCHAIN & WEB3

DLT Pilot Regime

The DLT Pilot Regime is the European testing framework for trading and settling tokenized securities using DLT.

WHAT IS IT? · FOR DUMMIES

The DLT Pilot Regime is like a closed test track where market infrastructures can experiment with securities on a blockchain without fully breaking the rules. The EU lets certain rules designed for the paper world be lifted temporarily, to see how tokenization works under real but controlled conditions and within limits.

WHAT IS IT? · PRO

The DLT Pilot Regime (Regulation (EU) 2022/858) sets up an experimental regime for market infrastructures based on distributed ledger technology that trade, record and settle tokenized financial instruments.

It allows temporary and selective exemptions from certain requirements of MiFID II, MiFIR and the Central Securities Depositories Regulation (CSDR), subject to volume limits and specific authorization, in order to test securities tokenization in a supervised environment (sandbox).

01 / Key points

  • Regulation (EU) 2022/858, the EU's testing framework (sandbox).
  • For DLT-based market infrastructures.
  • Allows temporary exemptions from MiFID II, MiFIR and CSDR.
  • Subject to volume limits and specific authorization.

This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on BOE and EUR-Lex.