Tokenized Shares as Collateral
Franklin Templeton Expands Tokenized Money Market Fund Collateral Program to Bybit Exchange
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Franklin Templeton has expanded its tokenized money market fund collateral program to Bybit, allowing eligible clients to borrow USDT or USDC for trading against Benji-issued fund shares. The shares remain in custody at ByCustody rather than being transferred to the exchange, while their value is mirrored on Bybit and investors continue to earn yield. The fund’s net assets are about $686 million, and the arrangement adds Bybit to Franklin Templeton’s existing off-exchange collateral partnerships with Binance and OKX. The companies describe the collaboration as part of a broader effort to expand tokenized investing and trading liquidity; a retail product on Mantle is also planned, according to one report.
Key Points
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Bybit described the program as a way to give clients greater capital efficiency while retaining risk-management standards familiar from traditional markets, according to Yoyee Wang, its global head of RWA and TradFi.
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Franklin Templeton’s Sandy Kaul said the arrangement is intended to help investors use collateral more effectively across major exchanges without giving up yield on the underlying holdings.
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The announcement described Franklin Templeton as managing $1.7 trillion in assets and Bybit as serving more than 80 million users worldwide, illustrating the scale of the two companies involved.
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