Definition ∞ On-Demand Capital represents financial resources that can be accessed and deployed immediately or with very short notice to meet liquidity needs or investment opportunities. This availability of funds is crucial for managing unexpected expenses, capitalizing on fleeting market conditions, or ensuring operational continuity. It signifies a high degree of financial flexibility and readiness. Businesses often seek to maintain a certain level of on-demand capital.
Context ∞ In the digital asset market, on-demand capital is increasingly relevant for decentralized finance (DeFi) protocols and institutional participants. Crypto news sometimes covers innovations like flash loans, which allow for nearly instantaneous, uncollateralized borrowing and repayment within a single blockchain transaction. The efficient sourcing and deployment of capital are critical for arbitrage, liquidations, and other time-sensitive strategies in the fast-moving crypto space.