Franklin Templeton and Binance have rolled out an institutional off-exchange collateral programme enabling eligible clients to use tokenized money market fund shares as collateral for trading on Binance.
The programme further advances a strategic collaboration announced by the two companies in early September 2025. Clients can use tokenized money market fund shares issued through Franklin Templeton's Benji Technology Platform as off-exchange collateral when trading through custody and settlement infrastructure provided by Ceffu, Binance's institutional crypto-native custody partner.
The programme aims to address institutional trader requirements by facilitatingthe use of regulated, yield-bearing money market fund assets in digital markets without depositing those assets on an exchange. The value of Benji-issued fund shares is mirrored within Binance's trading environment, while tokenized assets remain in third-party custody off-exchange. This is set to minimise counterparty risk, allowing institutional participants to earn yield and support trading activity without compromising custody, liquidity, or regulatory protections.
Tokenized assets bridge traditional and digital finance
Talking about the launch, Roger Bayston, Head of Digital Assets at Franklin Templeton, stated that since starting the partnership in 2025, work with Binance has focused on scaling the functionality of digital finance for institutions. The off-exchange collateral programme aims to enable clients to deploy assets in third-party custody while earning yield through new mechanisms.
Adding to this, Catherine Chen, Head of VIP and Institutional at Binance, commented that collaborating with Franklin Templeton to provide tokenized real-world assets as off-exchange collateral represents a natural next step in the mission to bring digital assets and traditional finance closer together. Optimising ways to leverage traditional financial instruments on-chain opens opportunities for investors and demonstrates how blockchain technology can boost market efficiency.
The programme aligns with institutional trends showing rising demand for stable, yield-bearing collateral supporting 24/7 settlement cycles and integrating into existing governance and risk frameworks.
Ian Loh, CEO of Ceffu, observed that institutions increasingly require trading models prioritising risk management without negatively impacting capital efficiency. Tokenized money market funds exemplify how traditional products can adapt for modern market structure, enabling institutions to manage risk and deploy capital more efficiently as digital finance becomes integrated into the financial system.
