Franklin Templeton and Binance have introduced an institutional off-exchange collateral programme. This programme allows eligible clients to use tokenized money market fund shares as collateral for trading on Binance.

This initiative builds upon a strategic partnership between the two companies that was announced in early 2025. Through this collaboration, clients can utilize tokenized money market fund shares from Franklin Templeton’s Benji Technology Platform as off-exchange collateral, while trading through Binance’s institutional crypto custody services provided by Ceffu.

The programme is designed to meet the needs of institutional traders by enabling them to use regulated and yield-bearing money market fund assets in digital markets without depositing these assets on an exchange. The value of Benji-issued fund shares mirrors within Binance’s trading environment, but tokenized assets remain under third-party custody off-exchange. This arrangement is intended to reduce counterparty risk, allowing clients to earn yield and support trading activity while maintaining custody, liquidity, and regulatory protections.

Tokenized assets as a bridge between traditional and digital finance

Roger Bayston, Head of Digital Assets at Franklin Templeton, highlighted that the partnership with Binance has focused on enhancing the functionality of digital finance for institutions since it began in 2025. The off-exchange collateral programme is aimed at enabling clients to deploy assets in third-party custody while earning yield through innovative mechanisms.

Catherine Chen, Head of VIP and Institutional at Binance, added that working with Franklin Templeton to offer tokenized real-world assets as off-exchange collateral represents a logical next step towards integrating traditional finance and digital assets. She emphasized that this collaboration optimizes ways to leverage traditional financial instruments on-chain, thereby opening up new investment opportunities and demonstrating how blockchain technology can enhance market efficiency.

The programme resonates with institutional trends indicating growing demand for stable, yield-bearing collateral supporting 24/7 settlement cycles and seamless integration into existing governance and risk frameworks.

Ian Loh, CEO of Ceffu, noted that institutions are increasingly seeking trading models that prioritize risk management without compromising capital efficiency. Tokenized money market funds exemplify how traditional products can be adapted for modern financial structures, enabling institutions to manage risk and deploy capital more efficiently as digital finance becomes a part of the broader financial ecosystem.