Franklin Templeton and Binance have introduced a new institutional off-exchange collateral program designed to improve security and capital efficiency in digital asset trading. The program allows eligible institutional clients to use tokenized money market fund shares issued through Franklin Templeton’s Benji Technology Platform as collateral while trading on Binance. This innovation represents a major step in bridging traditional financial assets with modern digital trading environments.
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Traditionally, institutional traders have faced challenges when using assets as collateral in crypto markets, often needing to move funds directly onto exchanges. This exposes them to additional counterparty risks and limits their ability to earn returns on those assets. With the new program, tokenized money market fund shares remain securely held off-exchange in regulated custody, while their value is reflected within Binance’s trading system. This allows institutions to maintain custody protection, earn yield, and support trading activities without compromising security or regulatory compliance.
Franklin Templeton’s Benji platform plays a key role in enabling this capability by converting traditional money market fund shares into tokenized assets that can be used efficiently in digital markets. This approach combines the stability and regulatory oversight of traditional financial products with the flexibility and speed of blockchain technology. According to Roger Bayston, Head of Digital Assets at Franklin Templeton, the initiative is designed to help institutions use their assets more effectively while maintaining the safety and regulatory protections they require.
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Binance also sees the partnership as an important milestone in bringing traditional finance and digital assets closer together. By supporting tokenized real-world assets as collateral, Binance is expanding its institutional offerings and making it easier for professional investors to participate in digital markets. Catherine Chen, Head of VIP and Institutional at Binance, emphasized that tokenization opens new opportunities for investors and demonstrates how blockchain can improve financial market efficiency.
Custody and settlement infrastructure for the program is supported by Ceffu, Binance’s institutional custody partner. This ensures that assets remain securely stored while still being accessible for trading purposes. The off-exchange collateral model helps institutions maintain greater control over their assets while benefiting from improved liquidity and operational efficiency.
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This initiative builds on Franklin Templeton and Binance’s broader strategic collaboration announced in 2025 and reflects the growing institutional demand for secure, yield-bearing digital collateral solutions. By enabling tokenized money market funds to function as trading collateral, the partnership is helping reshape how financial institutions interact with digital markets. As tokenization continues to gain momentum, programs like this highlight how traditional financial products can evolve to meet the needs of modern, blockchain-driven financial systems.
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