Franklin Templeton is collaborating with crypto exchange Bybit to offer tokenized money market fund shares as collateral for eligible institutional clients. The arrangement allows investors to pledge fund shares off-exchange, receive stablecoin credit lines, and continue earning yield on their investments without selling holdings.
This partnership expands the use of traditional financial products within the crypto ecosystem, offering institutional investors new ways to leverage assets for trading and potentially increasing liquidity for tokenized real-world assets.
Franklin Templeton has entered into a partnership with crypto trading exchange Bybit to provide eligible institutional investors with access to tokenized money market fund shares. This initiative allows clients to use their fund shares as collateral for trading activities on Bybit, without needing to sell their underlying holdings. The tokenized shares are issued through Franklin Templeton's Benji Technology Platform and are held by Bybit's ByCustody service, with their value reflected on the exchange's platform. Investors can continue to earn yield from the money market fund while leveraging the shares for trading. The specific money market fund involved in this program currently holds approximately $686 million in net assets, part of Franklin Templeton's broader $1.7 trillion asset management portfolio. This arrangement aims to offer institutional investors more flexible collateral options and expand regulated investment products into digital marketplaces. Franklin Templeton has similar off-exchange collateral agreements with other crypto exchanges like Binance and OKX.
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