Binance and Franklin Templeton Launch Institutional Off-Exchange Collateral Program Using Tokenized Money Market Funds

Binance has partnered with Franklin Templeton to launch a new institutional off-exchange collateral program that enables clients to use tokenized money market fund shares as collateral for trading.

The program is now live and allows eligible institutional clients to pledge tokenized shares issued via Franklin Templeton’s Benji Technology Platform as off-exchange collateral when trading on Binance. The initiative aims to improve capital efficiency and reduce counterparty risk for institutional participants in digital markets.

Tokenized Money Market Funds as Trading Collateral

Under the structure, tokenized money market fund shares remain securely held off-exchange in regulated custody. Their value is mirrored within Binance’s trading environment, allowing institutions to deploy yield-bearing traditional assets without transferring them directly onto the exchange.

This model addresses a long-standing challenge for institutional traders: the need to park capital on exchanges, potentially exposing assets to counterparty and custody risks. By keeping assets in regulated custody while reflecting collateral value within Binance’s infrastructure, institutions can continue earning yield while supporting trading activity.

Custody and settlement infrastructure for the program is supported by Ceffu, Binance’s institutional custody partner. Ceffu has recently received a full Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).

Bridging Traditional Finance and Digital Markets

Roger Bayston, Head of Digital Assets at Franklin Templeton, stated that the collaboration focuses on enabling institutions to deploy regulated, yield-bearing assets in digital markets without compromising custody protections.

Catherine Chen, Head of VIP & Institutional at Binance, said the initiative represents a step toward integrating tokenized real-world assets into trading workflows, positioning blockchain infrastructure as a bridge between traditional finance and digital asset markets.

Ian Loh, CEO of Ceffu, added that institutional participants increasingly require models that prioritize risk management while maintaining capital efficiency, noting that off-exchange collateral structures support both objectives.

Strategic Expansion of Tokenized RWA Infrastructure

The program expands on the strategic collaboration announced between Binance and Franklin Templeton in September 2025. By leveraging tokenized money market funds through the Benji platform, Franklin Templeton is extending traditional investment products into blockchain-based trading environments.

The offering responds to rising institutional demand for stable, yield-bearing collateral capable of supporting 24/7 digital asset markets. It also reflects broader momentum behind tokenized real-world assets (RWAs), as asset managers explore new settlement and liquidity mechanisms within crypto-native infrastructure.

Franklin Templeton has been active in digital asset research and blockchain innovation since 2018, integrating tokenization and data-driven asset management into its broader investment strategy.