Eligible clients can now use tokenized money market funds as off-exchange trading collateral.<\/p>\n
Asset manager Franklin Templeton<\/a>, which oversees about $1.6 trillion in assets, and Binance<\/a>, the world\u2019s largest crypto exchange by daily trading volume, have launched a new program that allows institutions to use tokenized money market funds (MMFs) as collateral when trading on Binance.<\/p>\n Under the collaboration, eligible clients can use tokenized fund shares issued through Franklin Templeton\u2019s Benji Technology Platform<\/a> as collateral, according to a press release viewed by The Defiant. Benji is Franklin Templeton\u2019s proprietary blockchain-based technology stack. <\/p>\n The release said the assets stay off the exchange in regulated custody, while their value is “mirrored” inside Binance\u2019s trading system. Custody and settlement are handled through Ceffu, Binance\u2019s institutional custody partner. <\/p>\n The setup is meant to reduce risk for institutions while allowing them to keep earning yield on their assets. The move highlights a larger trend of firms offering yield as a way to stay competitive \u2013 especially as more financial activity moves on-chain.<\/p>\n \u201cSince partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions,\u201d said Roger Bayston, Head of Digital Assets at Franklin Templeton. \u201cOur 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. That\u2019s the future Benji was designed for, and working with partners like Binance allows us to deliver it at scale.\u201d<\/p>\n The launch follows Franklin Templeton\u2019s broader push to bring MMFs into blockchain-based finance while remaining fully regulated. Earlier this year, the firm updated two institutional funds<\/a> to support stablecoin reserves and enable distribution via blockchain systems.<\/p>\n