Wholesale payment refers to large-value financial transactions typically conducted between financial institutions, corporations, or central banks. These payments are often time-critical and carry significant systemic risk, requiring robust and efficient settlement systems. Unlike retail payments, wholesale payments usually involve high-value transfers that underpin interbank settlements, securities transactions, and large corporate disbursements. They are a crucial component of a nation’s financial infrastructure.
Context
The digital asset space is exploring how distributed ledger technology (DLT) can modernize wholesale payment systems, offering potential for real-time gross settlement and reduced counterparty risk. Central banks are actively researching and piloting wholesale central bank digital currencies (CBDCs) to enhance the efficiency and security of interbank settlements. News in this area frequently covers collaborative projects between financial institutions and technology providers aimed at leveraging DLT for more streamlined and resilient wholesale payment infrastructure.
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