Distributed Ledger Technology (DLT) is the foundation of blockchain and allows data to be stored in a decentralized manner. Instead of depending on a single entity, information is replicated across multiple nodes, ensuring transparency, immutability, and resistance to fraud. Its application in the financial sector optimizes transaction traceability, reduces operating costs, and improves security in payments and transfers. Banks and fintechs are exploring its use in asset settlements and digital identity systems, which could revolutionize how we manage our financial data.