Institutional Banking

Definition ∞ Institutional banking provides financial services to large organizations, including corporations, governments, and other financial institutions. These services typically encompass corporate finance, asset management, capital markets activities, and specialized lending solutions tailored to the complex needs of institutional clients. The sector operates within stringent regulatory frameworks and handles high-value transactions. Its involvement is a significant indicator of mainstream adoption for new financial technologies.
Context ∞ The current discussion around institutional banking often centers on its cautious yet growing engagement with digital assets and blockchain technology, particularly regarding custody solutions, trading infrastructure, and tokenized securities. A key debate involves integrating decentralized finance principles into traditional institutional operations while maintaining regulatory compliance and risk management standards. Future developments will likely include more structured product offerings and specialized digital asset divisions within major institutional banks.