What is DLT?

Distributed Ledger Technology (or, simply, DLT) describes a range of protocols that allow their users to interact with an immutable database distributed across multiple locations.

In plain English, DLT enables users around the globe to agree on a shared set of facts without trusting a central authority. Users rely on cryptographic keys and signatures to add these facts to the database. Once added, they can’t be removed.

The technology that underpins Bitcoin – blockchain – is a type of DLT. In this case, the ‘shared set of facts’ is a record of transactions between users. Because everyone can track the changes themselves, there’s no need for a central administrator.

What does it mean that Xapo has a ‘DLT permission’?
Xapo’s DLT permission means that we’re licensed in Gibraltar to use distributed ledger technology for our clients – examples include storing and transmitting digital assets on your behalf.

What is the GFSC?

The Gibraltar Financial Services Commission (GFSC) oversees the financial services industry in Gibraltar – from auditors and insurance companies to DLT providers and banks.

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