Demystifying blockchain: the future of finance with ZTLment


11 May 2023

Frederik Fuglsbjerg, Marketing

In the rapidly evolving landscape of financial technology, blockchain has emerged as a game-changer. ZTLment, Europe's pioneering licensed payments institution built on blockchain technology, is at the forefront of this revolution. In this blog post, we will delve into the core concepts of blockchain, tokenisation, smart contracts, and regulated e-money, shedding light on how they are reshaping the financial industry.

What is blockchain?

Blockchain is a decentralised and immutable digital ledger that records transactions across multiple computers or nodes. Unlike traditional centralised systems, blockchain offers transparency, security, and immutability, making it a reliable and trustworthy technology for financial applications. Each transaction, or block, is linked to the previous one, forming a chain of blocks. This decentralised nature eliminates the need for intermediaries, reduces transaction costs, and enhances efficiency.

With ZTLment, you can safely and efficiently harness the benefits of blockchain technology, without having to compromise on a great and frictionless user experience.

What is tokenisation?

Tokenisation is the process of representing real-world assets, such as carbon certificates or physical assets, as digital tokens on a blockchain. Tokenisation brings accountability to the forefront, because it enables assets to be tracked, traded and accounted for in a more transparent and efficient manner.

Each token represents a specific quantity of sustainable asset or certificate, and the transaction history associated with the token is recorded immutably on the blockchain. This transparent and auditable ledger ensures the integrity of the certificates and the legitimacy of their origin. It creates a level of trust and verification that is crucial in fostering confidence among stakeholders, such as investors, regulators, and consumers, who seek assurance that sustainability claims are substantiated.

What are smart contracts?

Smart contracts are self-executing contracts with predefined rules encoded directly into the blockchain. These contracts automatically execute when the agreed-upon conditions are met, without the need for intermediaries. Smart contracts provide transparency, eliminate the potential for fraud, and streamline complex processes by automating the enforcement and execution of agreements.

At ZTLment, we've abstracted away the complexity that is normally associated with setting up smart contracts, by enabling finance teams to set up advanced smart contracts through what we call "conditional payments". Conditional payments is the non-technical way of saying that payments are triggered when predefined rules are met.

What is regulated e-money and how is it different from crypto?

Regulated e-money refers to digital representations of fiat currency, such as the Euro or the Pound, issued by licensed financial institutions. It is backed by reserves held in traditional banks, ensuring stability and safeguarding against volatility. Regulated e-money provides the benefits of instant, low-cost transactions while being subject to stringent regulatory frameworks, ensuring stronger protection and compliance with financial regulations. ZTLment uses regulated e-money, and can therefore be offer regulated financial services to businesses in the E.U.

On the other hand, cryptocurrencies, like Bitcoin or Ethereum, are decentralized digital currencies not backed by a central authority or traditional reserves. While cryptocurrencies offer fast and borderless transactions, they are known for their volatility and speculative nature. Crypto transactions are recorded on a public blockchain, enabling transparency and security but without the same level of regulation and oversight as regulated e-money.


Blockchain technology is revolutionizing the financial industry, and ZTLment is leading the way as Europe's first licensed payments institution built on blockchain. With its emphasis on transparency, security, and efficiency, blockchain offers immense potential for transforming traditional financial systems. Tokenization, smart contracts, and regulated e-money are just a few examples of how blockchain is reshaping finance, opening up new possibilities for innovation and inclusivity. As the fintech landscape continues to evolve, ZTLment is poised to make a lasting impact by harnessing the power of blockchain to redefine the future of finance.

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© 2024 ZTLment | CVR 41801298 | FTID 22043 | Linnésgade 20A, 2.sal, 1361 Copenhagen, Denmark

© 2024 ZTLment | CVR 41801298 | FTID 22043 | Linnésgade 20A, 2.sal, 1361 Copenhagen, Denmark

© 2024 ZTLment | CVR 41801298 | FTID 22043 | Linnésgade 20A, 2.sal, 1361 Copenhagen, Denmark