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Franklin Templeton and Binance launched a structure allowing tokenized money market fund shares to be used as trading collateral
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Institutional clients can trade on Binance while assets remain in regulated off-exchange custody
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The model improves capital efficiency and reduces counterparty risk
Off-Exchange Collateral Model
Franklin Templeton and Binance introduced a program that allows institutional traders to use tokenized shares of money market funds as collateral without moving assets onto an exchange.
The shares are issued through Franklin Templeton’s Benji platform and remain in regulated custody while Binance mirrors the collateral value inside its trading environment.
Reducing Counterparty Risk
Custody and settlement are handled by Ceffu, Binance’s institutional custody partner. This setup addresses concerns that grew after major exchange failures in previous years, which made institutions hesitant to park large balances on centralized platforms.
The structure also allows pledged assets to continue earning yield, improving capital efficiency compared with idle balances held directly on exchanges.
Part of a Broader Tokenization Trend
The move reflects a wider shift among asset managers adapting traditional liquidity products for tokenized markets. Franklin Templeton has already explored blockchain-based money market funds and structures aligned with stablecoin reserve requirements.
The announcement also follows recent comments from Mark Uyeda signaling regulatory openness toward tokenization.
