The recent years have witnessed an acceleration of the development of Distributed Ledger Technology (DLT) and its use in capital markets. It is widely acknowledged that the use of DLT can bring many transformative benefits and efficiencies for capital markets, through decentralised processing, validation and authentication of transactions and other types of data exchange.1 Policymakers and regulators have acknowledged and highlighted the benefits of the use of DLT to capital market (see Part I – Benefits), and created Sandbox regimes to test the deployment of new technologies. However, the current European financial regulatory regime – which follows the G20 reform programme introduced after the 2009 global financial crisis – is based on a largely centralised system of financial transactions and data recordings. While this was appropriate for the aftermath of the crisis, it has also given rise to the concentration of critical market and post-trade operations in few actors that can lead to single-points-of-failures. DLT offers a vision for a more innovative, accessible and resilient decentralised financial market infrastructure. […]