Franklin Templeton and Binance Launch Off-Exchange Collateral Program for Institutions

Benji-issued money market fund shares to enable yield-bearing collateral without exchange custody risk.

In a significant step toward strengthening institutional participation in digital asset markets, Franklin Templeton and Binance have announced a new institutional off-exchange collateral program, allowing eligible clients to use tokenized money market fund shares as collateral while trading on Binance.

Now live, the program enables institutional traders to pledge tokenized shares issued through Franklin Templeton’s Benji Technology Platform without moving assets onto an exchange, improving both security and capital efficiency.

Bridging Traditional Finance and Digital Markets

The initiative addresses one of the most persistent challenges for institutional crypto traders: the need to park large volumes of collateral directly on exchanges, exposing them to counterparty and custody risk.

Under the new structure:

• Tokenized money market fund shares remain held off-exchange in regulated custody

• Their value is mirrored inside Binance’s trading environment

• Institutions can trade while continuing to hold regulated, yield-bearing assets

This approach reduces counterparty exposure while allowing clients to earn yield on collateral supporting their digital trading activity.

Franklin Templeton: Yield and Security Without Compromise

Roger Bayston, Head of Digital Assets at Franklin Templeton, said the collaboration is focused on making digital finance viable for institutions.

“Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions,” Bayston said.“Our off-exchange collateral program lets clients put their assets to work in regulated custody while safely earning yield in new ways.”

He added that this reflects the long-term purpose of Benji: enabling trusted investment products to function seamlessly in modern digital markets.

Binance Expands Tokenized Real-World Asset Utility

Catherine Chen, Head of VIP & Institutional at Binance, said the program is a natural evolution of Binance’s mission to connect traditional finance with blockchain-based markets.

“Partnering with Franklin Templeton to offer tokenized real-world assets for off-exchange collateral settlement is a natural next step,” she said.“Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors.”

Binance noted growing institutional demand for stable, yield-bearing collateral that can settle continuously in 24/7 markets.

Custody and Settlement Supported by Ceffu

The custody and settlement infrastructure for the program is supported by Ceffu, Binance’s institutional crypto-native custody partner.

Ian Loh, CEO of Ceffu, said the initiative reflects the industry’s shift toward risk-managed trading models.

“Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency,” Loh said.“This program demonstrates how off-exchange collateral can support institutional participation while maintaining strong custody and control.”

Expanding Strategic Collaboration Since 2025

The launch builds on Franklin Templeton and Binance’s strategic collaboration announced in September 2025, and expands both firms’ networks of off-exchange program partners.

By leveraging Benji-issued tokenized money market fund shares, Franklin Templeton is extending regulated investment products into blockchain-enabled settlement environments, helping institutions:

• Trade more efficiently

• Maintain custody protections

• Reduce liquidity friction

• Access yield-bearing collateral in digital markets

Tokenization as the Next Institutional Infrastructure Layer

The program signals a broader trend: tokenized real-world assets are increasingly being adopted as institutional-grade infrastructure for digital finance.

With off-exchange collateral models gaining traction, the integration of regulated money market fund assets into crypto trading ecosystems could accelerate the convergence of traditional capital markets and blockchain-based financial systems.