The EU DLT Pilot project, active from 03/2023, is focused on testing of DLT-based financial market infrastructures, like trading and settlement systems, in a controlled environment for up to 6 years. To promote innovation, a special legal regime ensures investor protection and grants exemptions from certain regulations for eligible participants. The European Securities and Markets Authority (ESMA) oversees the project, with findings by 2026 determining its future.