Chainlink's Fulcrum Aims to Mobilize $346M in Idle Institutional Collateral
Chainlink's new platform, Fulcrum, aims to tackle the problem of idle collateral, estimated by Citi to be around 25% of institutional assets, which costs the average Tier 1 firm around $346 million in forgone revenue per year.
Fulcrum is a cross-chain repurchase agreement platform that allows for the separation of where a financing agreement is managed from where cash and collateral settle.
The platform uses three Chainlink components: the Chainlink Runtime Environment (CRE), CCIP, and Data Streams, to facilitate cross-chain communication and asset transfers.
While Fulcrum has demonstrated a cross-chain securities-financing transaction with DTCC, no institutional transaction volume has been disclosed, and the platform is still in the process of being integrated with TradFi venues.