Intercompany Funding

Definition ∞ Intercompany funding involves financial transactions between different entities that belong to the same parent company or corporate group. These transactions can include loans, advances, or other capital transfers to support operational needs or strategic initiatives. In the context of digital assets, this could involve internal transfers of tokenized value or stablecoins. It streamlines capital allocation within a corporate structure.
Context ∞ While intercompany funding is primarily a corporate finance term, its relevance in crypto news arises when large corporations with digital asset divisions conduct internal capital movements. News concerning corporate treasuries adopting digital assets or blockchain for internal settlements might mention this practice. It highlights the growing use of blockchain technology for efficient and transparent internal financial operations. The adoption of tokenized assets for such funding can reduce friction and costs.