Wholesale credit refers to large-scale lending and credit facilities provided by financial institutions to other institutions, corporations, or governments, rather than to individual consumers. These credit arrangements typically involve substantial amounts and are tailored to the specific needs of institutional clients. It underpins much of the interbank and corporate financial activity. This type of credit is a foundational element of global financial markets.
Context
The potential for digital assets to integrate with and enhance wholesale credit markets is a growing area of interest, particularly with the advent of tokenized securities and central bank digital currencies. A key discussion involves leveraging blockchain for more efficient settlement, collateral management, and syndicated lending. Future developments may see blockchain technology streamlining processes and reducing counterparty risk in institutional credit transactions.
The bank’s global credit initiative leverages third-party custody to transform major digital assets into financeable balance-sheet collateral, optimizing institutional liquidity management.
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