Franklin Templeton has extended its tokenised money market collateral model to Bybit, allowing eligible institutional clients to pledge fund shares held outside the exchange and access USDT or USDC trading credit lines.
The collateral consists of tokenised money market fund shares issued on Franklin Templeton’s Benji Technology Platform.
Building with @Bybit_Ins.
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Bybit and Franklin Templeton Form Strategic Collaboration to Expand Access to Tokenized Investing
The wider collaboration launches with a new off-exchange collateral program that unlocks trading liquidity for institutional clients, alongside… pic.twitter.com/tjgglM0YwQ
How the Collateral Model Works
Eligible institutional clients pledge their tokenised fund shares through ByCustody and receive a trading credit line in USDT or USDC on Bybit.
The shares remain in off-exchange custody, allowing clients to continue earning income from the money market fund while using its value to support trading.
The structure reduces the capital institutions need to keep directly on the exchange.
The shares are issued through Benji, Franklin Templeton’s blockchain-integrated recordkeeping and transfer-agency platform. The system records ownership and supports transfers of the tokenised fund shares used within the collateral arrangement.
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The facility is now available to eligible institutional clients. However, the companies did not disclose the eligibility criteria, collateral haircuts, credit limits, fees or liquidation arrangements.
The announcement also did not specify which trading products the credit lines can support or where the service is available.
Franklin Templeton already operates a similar collateral programme with Binance.
In that arrangement, eligible clients pledge Benji-issued money market fund shares held through Ceffu, with their value mirrored inside Binance for trading purposes.
Wallet-Based Wealth Product Is Still Pending
The Bybit partnership also covers a separate tokenised wealth product for wallet-based investors. It is expected to provide access to Franklin Templeton investment strategies through Bybit and the Mantle blockchain.
That initiative has not yet launched. Bybit and Mantle said further details would be provided later, leaving the product structure, supported strategies, fees, eligibility rules and rollout date undisclosed.
The partners also plan to develop educational content on tokenised investment products.
