Wholesale Market

Definition ∞ A wholesale market is a financial market where large-scale transactions occur between institutional entities, such as banks, corporations, and other financial institutions. Unlike retail markets, which serve individual consumers, wholesale markets deal with high-volume trades of commodities, currencies, securities, or other financial instruments. These markets are characterized by lower transaction costs per unit and access typically restricted to qualified participants. They form a critical layer of the global financial infrastructure.
Context ∞ The digital asset sector is seeing the development of wholesale markets for cryptocurrencies and tokenized assets, catering to institutional investors and large-scale traders. Discussions often address the need for robust liquidity, secure custody solutions, and compliant trading platforms to meet institutional demands. The potential for blockchain technology to streamline wholesale market operations, such as interbank settlements, is a key area of focus. Regulatory clarity and infrastructure development are essential for the expansion of digital asset wholesale markets.