Binance and Franklin Templeton have activated tokenized money market funds as off-exchange collateral, accelerating institutional crypto adoption and tightening the bridge between traditional finance and blockchain-based trading infrastructure.
Franklin Templeton and Binance Expand Off-Exchange Trading Infrastructure
Digital asset firms and asset managers are expanding institutional infrastructure as tokenization gains momentum. Crypto exchange Binance announced on Feb. 11 that it has launched an institutional off-exchange collateral program with Franklin Templeton, enabling eligible clients to use tokenized money market fund shares as trading collateral.
The program enables qualified institutions to deploy tokenized shares of Franklin Templeton money market funds through its Benji Technology Platform while keeping the underlying assets in third-party custody rather than on the exchange.
Binance CEO Richard Teng shared on social media platform X:
“Today, Binance is proud to announce our first offering with Franklin Templeton. Institutional clients can now use tokenized money market fund shares issued via Franklin Templeton’s Benji Technology Platform as off-exchange collateral for trading on Binance, improving efficiency and bringing TradFi and closer.”
Head of Digital Assets at Franklin Templeton Roger Bayston stated: “Our off-exchange collateral program is just that: letting clients easily put their assets to work in third-party custody while safely earning yield in new ways.” He added that the framework aims to provide operational safeguards and regulatory alignment for institutions entering digital markets.
Head of VIP & Institutional at Binance Catherine Chen explained that integrating tokenized real-world assets into trading workflows demonstrates how infrastructure can connect traditional finance with markets.
Within the arrangement, the collateral value of Benji-issued fund shares is reflected inside Binance’s trading system, while the tokenized holdings remain segregated off-exchange, a structure designed to mitigate counterparty exposure. CEO of Ceffu Ian Loh noted that institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency.
The release details:
“Now live, eligible clients can use tokenized money market fund (MMF) shares issued through Franklin Templeton’s Benji Technology Platform as off-exchange collateral when trading on Binance through the custody and settlement infrastructure provided by Ceffu, Binance’s institutional crypto-native custody partner.”
The rollout builds on a strategic collaboration introduced in September 2025 and aligns with growing institutional demand for stable, yield-bearing instruments that can support continuous settlement cycles. As tokenization advances, money market funds are becoming a practical bridge between regulated financial products and blockchain-based trading venues.
FAQ ⏰
- What did Binance and Franklin Templeton launch? They launched an institutional off-exchange collateral program using tokenized money market fund shares.
- How are Benji-issued money market fund shares used on Binance? Eligible clients can post Benji-issued tokenized MMF shares as off-exchange trading collateral.
- Who provides custody and settlement for the tokenized collateral? Ceffu handles custody and settlement as Binance’s institutional crypto-native custody partner.
- Why are tokenized money market funds gaining traction in crypto markets? They offer stable, yield-bearing collateral designed for compliant, capital-efficient 24/7 trading environments.
Author: Kevin Helms
Source: Bitcoin
Reviewed By: Editorial Team
