Franklin Templeton expands tokenized collateral on Bybit
6.9 Investments Franklin Templeton expands tokenized collateral to Bybit, letting institutions use fund shares as off-exchange collateral while assets stay in custody and continue earning yield.
Franklin Templeton has expanded its tokenized collateral service to Bybit, enabling institutional clients to use tokenized shares of its money market fund as off-exchange collateral for trading. Through the Benji platform, clients receive BENJI tokens, each backed one-to-one by shares in the Franklin OnChain U.S. Government Money Fund. These tokens can be pledged via ByCustody to access USDT or USDC credit lines on Bybit. The underlying assets remain securely in custody, allowing clients to continue earning yield while their value is reflected within Bybit’s trading environment. This arrangement reduces counterparty risk and improves capital efficiency, as assets do not need to be transferred onto the exchange. Currently representing about $686 million in net assets, the program builds on similar partnerships Franklin Templeton has with other major exchanges. There are also plans to extend the service to wallet-based retail investors via the Mantle blockchain network.
