Crypto28 September, 20262 min read
Bybit Accepts Franklin Templeton Benji Tokenized Money Market Fund Shares as Collateral
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Franklin Templeton tokenized MMF shares can be pledged on Bybit as off-exchange collateral. Represents roughly $686 million in net assets.
Bybit adds Franklin tokenized collateral
Bybit announced that it will accept Franklin Templeton tokenized money market fund shares as collateral for USDT or USDC trading credit lines while the underlying assets remain held off-exchange through ByCustody. Franklin Templeton said the shares are issued through its Benji Technology Platform and that the arrangement lets investors pledge the shares without moving the underlying assets onto Bybit. The program is designed so that ByCustody keeps the assets off-exchange while Bybit mirrors their value inside its trading environment to support trading liquidity.
Benji shares “represent about $686 million in net assets,” and Benji “currently pays a 3.7% annualized yield” based on the latest seven-day rate. Sandy Kaul, Franklin Templeton’s Head of Digital Assets and Innovation, said, “So now I'm able to really look across the top exchanges and be able as an investor to use my collateral more optimally while earning yield on it.”
Custody stays off-exchange
Bybit and Franklin Templeton framed the collateral model around separating custody from trading, with ByCustody holding the underlying assets off-exchange while Bybit recognizes their mirrored value for credit lines. The arrangement “allows investors to borrow Tether's USDT or Circle's USDC against shares representing roughly $686 million in net assets while continuing to earn yield on the underlying fund.” The shares are issued through Benji and the latest seven-day rate supports a 3.7% annualized yield.
Yoyee Wang, Bybit’s global head of RWA and TradFi, said institutions increasingly expect “the same flexibility and risk standards from crypto venues that they get in traditional markets.” Finbold said the underlying tokenized assets remain held off-exchange in custody while their value is mirrored within Bybit’s trading environment, allowing clients to continue earning yield while supporting trading activity.
Retail track and missing terms
Bybit and Franklin Templeton said the collaboration also contemplates a wallet-based tokenized wealth product on Bybit and Mantle, alongside digital content and education initiatives for wallet-based investors. The tokenized wealth product on the Bybit exchange and Mantle chain would provide wallet-based investors with access to Franklin Templeton investment strategies, with further details to be shared separately by Bybit and Mantle. The release gives no name, fee, minimum or start date for the wallet product, and it said Bybit and Mantle would share details separately.
CoinDesk said the partnership allows investors and wallet holders on the exchange to pledge shares as collateral to borrow stablecoins USDT or USDC while earning yield on the underlying assets. Altcoin Buzz said launch terms remain unclear, and it said the announcement does not confirm whether the service is already available to every Bybit user.