Franklin Templeton, a global asset manager, and Binance, the world’s leading cryptocurrency exchange, have launched a new program that lets large investors use tokenized money market fund shares as collateral for crypto trading.
The goal is to make institutional trading safer, more efficient, and more flexible by linking regulated yield assets with digital markets.
According to the official announcement, Binance and Franklin Templeton have activated an off-exchange collateral model for institutional clients.
The program allows approved users to use tokenized money market fund shares, created through Franklin Templeton’s Benji platform, as collateral while trading on Binance.
This is the first live rollout from the partnership both companies announced last year. It focuses on solving a common problem for institutions: how to trade crypto without moving all assets directly onto an exchange.
Roger Bayston, Head of Digital Assets at Franklin Templeton, said,
“Our off-exchange collateral program is just that: letting clients easily put their assets to work in regulated custody while safely earning yield in new ways.”
However, Custody for these tokenized assets is handled by Ceffu, Binance’s institutional custody partner. The assets remain off-exchange in regulated accounts while being pledged as collateral for trading activity.
This reduces counterparty risk and gives institutions more control and protection over their holdings.
With this program, institutional clients can use tokenized shares of regulated money market funds instead of moving large cash balances onto the exchange. These tokenized funds are yield-bearing, which means they continue earning returns even while being used as collateral.
The assets themselves are not held directly on Binance. Instead, their value is reflected inside the exchange’s trading system, while the real holdings stay protected in regulated custody accounts.
This setup is designed to reduce counterparty exposure and improve asset safety.
The program reflects a growing trend of real-world assets being tokenized and used in crypto markets. Institutions increasingly want stable, yield-generating collateral that can operate 24/7.
By offering tokenized money market funds on Binance, the platform meets this demand and gives investors more flexible trading options.
It lets institutions use tokenized money market fund shares as collateral on Binance while assets stay in regulated custody.
They represent regulated fund shares on blockchain and can be pledged for trading while still earning yield in custody.
Yes. The tokenized money market funds continue generating returns even when used as collateral.
It reduces counterparty risk by keeping assets in regulated custody instead of moving them directly onto exchanges.
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