Franklin Templeton Expands Tokenized Collateral to Bybit After Binance Launch
Franklin Templeton's tokenized money market fund shares, issued under the Benji brand, can now serve as collateral for USDT and USDC credit lines on Bybit. The arrangement mirrors a similar integration with Binance launched in February, allowing clients to earn yield while borrowing against their holdings.
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New Integration with Bybit
Franklin Templeton has made its tokenized money market fund shares available as collateral on Bybit, enabling eligible clients to pledge the shares for USDT or USDC trading credit lines. The shares remain in custody throughout and continue to earn yield on the underlying assets, allowing users to borrow capital without liquidating their positions.
Expansion of an Existing Model
The Bybit arrangement follows an identical structure Franklin Templeton deployed on Binance in February. By making the tokenized shares usable as collateral across multiple exchanges, Franklin Templeton is broadening the utility of its Benji-branded products and creating multiple on-ramps for institutional clients to access both yield and leverage simultaneously. The move signals growing institutional appetite for composable tokenized assets that retain yield-bearing properties while serving as financial primitives in trading workflows.
Why It Matters
For Traders
Multi-exchange collateral integration gives more venues to access leveraged USDT/USDC lines without moving collateral, reducing friction for active trading strategies.
For Investors
Expanded distribution of tokenized assets across major venues increases institutional adoption surface and signals sustainable demand for yield-bearing on-chain money market products.
For Builders
DeFi protocols can model similar yield-in-collateral designs; the repeatable pattern shows tokenized fund shares can function as composable primitives across multiple platforms.
This article is for information only and is not financial advice. Read the full disclaimer.
