Franklin Templeton and Bybit partner for tokenized collateral

tokenized money market funds off-exchange collateral institutional digital assets real-world assets blockchain finance

Franklin Templeton and Bybit have announced a strategic collaboration to expand access to tokenized investing through an off-exchange collateral program. This initiative allows eligible institutional clients to use tokenized money market fund shares, issued via the Benji Technology Platform, as collateral for USDT or USDC trading credit lines on Bybit.

Under this arrangement, the underlying assets remain held off-exchange with a regulated custodian, ByCustody, which helps mitigate counterparty risk. This model enables investors to maintain their positions in yield-bearing assets—such as the Franklin OnChain U.S. Government Money Fund—while simultaneously utilizing the value of those assets to support trading liquidity on the exchange.

The collaboration also aims to extend tokenized wealth and yield-generation strategies to retail and wallet-based investors, including planned initiatives on the Mantle network. This expansion follows similar tokenized collateral arrangements previously established by Franklin Templeton with other platforms like Binance.

Entities

Benji Technology Platform · ByCustody · Bybit · Franklin Templeton · Mantle · SEC

Claims

What the coverage asserts, and how many sources carry each claim.

[● 4 SOURCES] Franklin Templeton is expanding its tokenized collateral services to Bybit. www.coincu.com · cryptobriefing.com · cryptonomist.ch · finbold.com
[○ 1 SOURCE] The Benji Technology platform offers an annualized yield of 3.7%. cryptonomist.ch
[○ 1 SOURCE] Franklin Templeton’s tokenized offerings have exceeded $2 billion in assets under management. cryptobriefing.com
[○ 1 SOURCE] Institutional clients can use tokenized money market fund shares via ByCustody to access USDT or USDC trading credit lines on Bybit. finbold.com
[○ 1 SOURCE] BENJI tokens are issued on a one-to-one ratio with shares in the Franklin OnChain U.S. Government Money Fund (FOBXX). cryptobriefing.com
[○ 1 SOURCE] The SEC issued a no-action letter in August 2026 permitting the use of tokenized FOBXX and BENJI tokens for cash and collateral management. cryptobriefing.com