Wholesale Funding

Definition ∞ Wholesale Funding refers to large-scale financing obtained by financial institutions from other institutions, such as banks, corporations, or money market funds, rather than from individual depositors. This funding source typically involves short-term loans, commercial paper, or interbank borrowing. It provides significant liquidity for financial operations and asset growth.
Context ∞ In the evolving digital finance landscape, discussions around Wholesale Funding are extending to how institutions might leverage central bank digital currencies (CBDCs) or tokenized institutional money for interbank settlements and large-value payments. News often explores the potential for blockchain-based platforms to streamline wholesale funding markets, offering greater efficiency and transparency. Regulatory bodies are examining the implications of these digital innovations for financial stability and monetary policy transmission.