Definition ∞ Wholesale finance rails refer to the underlying infrastructure and payment systems used for large-value transactions between financial institutions, corporations, and central banks. These systems facilitate interbank settlements, securities clearing, and other institutional financial flows. They are designed for high volume, high security, and often real-time processing. These rails form the backbone of the financial system.
Context ∞ The potential for central bank digital currencies (CBDCs) and distributed ledger technology (DLT) to modernize wholesale finance rails is a significant area of discussion in digital economics. These new technologies aim to improve the speed, efficiency, and security of interbank settlements and cross-border payments. News often covers pilot projects and research by central banks exploring how DLT can upgrade existing wholesale payment infrastructures.