Definition ∞ Wholesale capital formation involves the process of raising large amounts of capital from institutional investors or high-net-worth individuals. This typically funds large-scale projects, businesses, or investment vehicles. It contrasts with retail capital formation, which targets individual small investors. This process is essential for significant economic development and growth.
Context ∞ Wholesale capital formation is increasingly exploring the use of distributed ledger technology to streamline issuance and distribution processes. Discussions often involve the potential for tokenized securities to reduce intermediaries and enhance market access for institutional participants. Future developments will likely see greater efficiency and transparency in large-scale private capital markets.