Crypto-friendly institution Franklin Templeton brings its tokenized collateral service to Bybit
Franklin Templeton’s tokenized money market shares can be used as collateral for USDT or USDC trading credit lines on Bybit while earning yield on the underlying assets.
Franklin Templeton and Bybit have collaborated to allow eligible institutions to use tokenized shares of Franklin Templeton's money market funds as collateral for trading on Bybit's platform. This program lets institutions keep their assets in off-exchange custody while accessing credit lines denominated in USDT or USDC stablecoins to trade crypto without selling the fund shares or transferring them onto the exchange.
The partnership aims to expand the use of tokenized shares beyond simple buy-and-hold investments and generate yield on money market fund holdings. Franklin Templeton's Benji platform managed $669 million in assets as of April, while BlackRock's USD Institutional Digital Liquidity Fund is the largest tokenized money market fund at $2.2 billion.
The arrangement is part of a growing trend in tokenized money market funds, valued at over $9 billion by the Bank for International Settlements as of September 2025.
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Also reported by 1 other outlet
- Bybit accepts Franklin Templeton tokenized funds as trading collateral cointelegraph.com
