Crypto · updated 1h ago · 1 min read
Franklin Templeton Expands Tokenized Collateral Program to Bybit for USDT And USDC Trading Credit Lines
Franklin Templeton expands tokenized collateral program to Bybit for trading. Users pledge tokenized money market fund shares to obtain USDT or USDC trading credit.
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5 of 8 outlets skipped it: benji pays a 3.7% annualised yield (seven-day rate)..
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Franklin to Bybit Collateral
Franklin Templeton expanded its off-exchange collateral program to Bybit, letting Bybit users pledge shares in Franklin Templeton’s tokenized money market funds as collateral for USDT or USDC trading credit lines. ByCustody will hold the underlying assets off-exchange, while Bybit’s trading environment mirrors their value to enable yield generation without moving the underlying assets to Bybit.
Franklin Templeton said the shares are issued through its Benji Technology Platform, which provides blockchain-integrated record keeping and transfer agency infrastructure. The shares represent about $686 million in net assets, and Benji currently pays a 3.7% annualized yield based on the latest seven-day rate.
How the Mechanism Works
Bybit users can access stablecoin credit lines while continuing to earn yield on the underlying assets, because the tokenized collateral arrangement keeps custody separated from trading. The partnership uses Franklin Templeton’s Benji Technology Platform to issue the tokenized money market fund shares, and ByCustody to keep the underlying assets held off-exchange.
Users will not have to move the underlying assets to Bybit, with the value mirrored in Bybit’s trading environment. The underlying shares never actually move onto Bybit, while ByCustody keeps the assets off-exchange and mirrors their value inside Bybit’s trading environment.
Broader Adoption Signals
Franklin Templeton said the Bybit rollout follows similar off-exchange collateral partnerships with Binance and OKX, giving investors access across multiple crypto trading platforms. CoinDesk said the expansion reflects a broader industry pattern in which several crypto platforms accept tokenized funds as collateral for trades, including Crypto.com and Deribit using BlackRock’s BUIDL fund.
The program is positioned as an off-exchange collateral initiative for institutional clients, with tokenized money market fund shares pledged through ByCustody to access Tether (USDT) or USD Coin USDC credit lines. The collaboration extends to wallet-based investors through a tokenized wealth product on the Bybit exchange and Mantle chain, alongside digital content and education initiatives.