Franklin Templeton and Bybit launch off-exchange collateral program for tokenized money fund shares
Franklin Templeton has partnered with Bybit to allow eligible institutional traders to use tokenized money market fund shares as off-exchange collateral for stablecoin credit lines while continuing to earn fund yield.
Bybit and asset manager Franklin Templeton announced a strategic collaboration that enables eligible clients to pledge tokenized money market fund shares as collateral for USDT and USDC trading credit lines. Issued through Franklin Templeton's Benji platform, the shares are pledged via custody platform ByCustody and remain off the exchange, allowing holders to maintain exposure and keep earning yield on the underlying fund.[2][3][7][8]
Under the setup, Bybit mirrors the value of the pledged shares inside its trading system, which the exchange stated reduces counterparty exposure for clients. Franklin Templeton, which manages roughly $1.7 trillion to $1.8 trillion in assets, previously established similar off-exchange collateral programs with Binance and OKX in 2025.[1][2][5]
The firms also plan to roll out a tokenized wealth product available on Bybit and the Mantle network, along with education programs for retail investors.[1][2]
Key facts
- Franklin Templeton and Bybit announced a collaboration letting eligible clients pledge tokenized money market fund shares as off-exchange collateral for USDT or USDC trading credit lines.
- The tokenized fund shares are issued through Franklin Templeton's Benji platform and pledged through ByCustody without moving onto Bybit.
- The pledged assets remain in custody and continue paying yield while Bybit mirrors their value inside its trading system.
- Franklin Templeton launched similar collateral integrations with Binance in February 2025 and with OKX in April 2025.
- The companies also plan to launch a tokenized wealth product on Bybit and the Mantle blockchain, alongside retail educational programs.
- Sources report Franklin Templeton manages roughly $1.7 trillion to $1.83 trillion in assets, with about $686 million held in its tokenized money market fund.
Sources · 8 sources
- LS
Laura Shin@laurashinPost on X ·
Franklin Templeton's Benji-issued fund shares now work as off-exchange collateral on Bybit, after similar programs at OKX and Binance. The deal also includes a tokenized wealth product on Bybit and Mantle. https://t.co/j2YUOKqvgg
Open source - UN
UnchainedArticle ·
Bybit Accepts Franklin Templeton’s Tokenized Money Fund Shares as Off-Exchange Collateral Traders who want credit on a crypto exchange usually have to deposit collateral with the exchange first. Bybit is now letting eligible clients back their trades with shares of Franklin Templeton money market funds that stay in custody and keep earning yield. The two companies announced a strategic collaboration on Monday. Its first piece lets clients post tokenized money market fund shares issued through Benji , Franklin Templeton’s blockchain-based recordkeeping and transfer agency platform, as off-exchange collateral for Bybit trades without depositing them. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . How the Collateral Works Clients pledge the fund shares through ByCustody , a custody platform, and receive USDT or USDC trading credit lines on Bybit in return. The shares never move to the exchange. Bybit mirrors their value inside its trading system, so clients can trade against them while the fund keeps paying its yield. Bybit said keeping the assets off the exchange cuts clients’ counterparty exposure. “For institutions, extending connectivity of the Benji Technology Platform to Bybit offers a trusted venue to put regulated, yield-bearing assets to work in digital markets,” Sandy Kaul , Franklin Templeton’s head of digital assets and innovation, said in the release . Not the First Exchange In April 2025, OKX and Standard Chartered launched a pilot to accept Franklin Templeton’s tokenized money market funds as off-exchange collateral, with the bank as custodian, and Franklin Templeton and Binance launched a similar program for institutional clients in February, with Binance’s custody partner Ceffu holding the assets. “By expanding the range of high-quality collateral available through our off-exchange infrastructure, we are helping clients deploy capital more effectively while maintaining exposure to trusted, regulated investment products,” Yoyee Wang , Bybit’s global head of RWA and TradFi, said in the release. The Bybit deal goes further than collateral. Franklin Templeton, which manages $1.7 trillion , also plans a tokenized wealth product , available on Bybit and the Mantle chain, for investors who hold assets in crypto wallets. The companies said Bybit and Mantle will share details separately, and that they will also run education programs for retail investors. The deal comes days after CFTC staff let futures brokers invest customer funds in tokenized assets . Related Listen: Robinhood’s Tokenized AMC Shares Spark a Fight Over What Stock Tokens Really Are The post Bybit Accepts Franklin Templeton’s Tokenized Money Fund Shares as Off-Exchange Collateral appeared first on Unchained .
Open source - CT
Coin TelegraphArticle ·
Bybit accepts Franklin Templeton tokenized funds as trading collateral Eligible institutions can pledge Benji-issued fund shares for stablecoin credit lines while keeping the underlying assets in off-exchange custody.
Open source - CP
Crypto Patel@CryptoPatelPost on X ·
Franklin Templeton has partnered with Bybit to let eligible clients use BENJI tokenized fund shares as collateral for USDT and USDC trading credit. 🔹 Franklin Templeton AUM: ~$1.7T 🔹 Tokenized Fund Assets: ~$686.6M 🔹 Recent Yield: ~3.7% 🔹 Collateral: BENJI / FOBXX 🔹 Stablecoins: USDT & USDC 🔹 Custody: ByCustody 🔹 Future: Tokenized wealth product on Mantle
Open source - CB
Coin Bureau@coinbureauPost on X ·
🚨BIG MOVE: $1.83 TRILLION asset manager Franklin Templeton is turning tokenized money market funds into ACTIVE crypto collateral with Bybit. Institutional Bybit clients can now pledge tokenized fund shares for USDT or USDC credit lines without selling the assets or moving them onto the exchange. That means institutions can keep earning yield while unlocking fresh trading capital. With tokenized money market funds already above $9 BILLION, RWAs are moving fast from passive investments into core crypto market infrastructure.
Open source - CO
CoinDesk@CoinDeskPost on X ·
NEW: Franklin Templeton expands its off-exchange collateral program to Bybit, letting users pledge shares in its $686M tokenized money market fund as collateral to borrow $USDT or $USDC while earning yield, without moving assets onto the exchange. https://t.co/OiOlhmISXY
Open source - BS
BSCN@BSCNewsPost on X ·
Bybit and Franklin Templeton want to boost Tokenized Investing Bybit Institutional (@Bybit_Ins) and Franklin Templeton (@FTI_US) have partnered to tokenize money market fund shares within Bybit’s institutional trading ecosystem. Clients meeting certain criteria can use Benji platform-issued shares for off-exchange collateralization to obtain $USDT and $USDC trading credit lines. This allows them to stay exposed to regulated assets that provide yield without putting them on the exchange. ByCustody lets users keep assets in regulated custody and collateralize their value on-chain.
Open source - CO
CoindeskArticle ·
Crypto-friendly institution Franklin Templeton brings its tokenized collateral service to Bybit Franklin Templeton’s tokenized money market shares can be used as collateral for USDT or USDC trading credit lines on Bybit while earning yield on the underlying assets.
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