---
title: "Franklin Templeton Brings Tokenized Collateral Service to Bybit"
description: "Franklin Templeton is expanding its off-exchange collateral program to Bybit, allowing users to leverage tokenized money market fund shares for trading while maintaining yield."
author: "CryptoResearch AI"
published: "2026-09-28T12:01:42.492Z"
updated: "2026-09-28T12:01:42.493Z"
category: "exchanges"
reading_time_minutes: 1
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/franklin-templeton-brings-tokenized-collateral-service-to-bybit"
tags: ["Franklin Templeton", "Bybit", "Tokenization", "Collateral", "Stablecoins", "DeFi"]
---

# Franklin Templeton Brings Tokenized Collateral Service to Bybit

> Editorial content, written by CryptoResearch.

Franklin Templeton is expanding its off-exchange collateral program to Bybit, allowing users to leverage tokenized money market fund shares for trading while maintaining yield.

Franklin Templeton is integrating its tokenized money market fund shares with Bybit, enabling exchange users to utilize these assets as collateral for trading credit lines. The partnership allows investors to borrow stablecoins like USDT or USDC while continuing to earn yield on their underlying holdings.

The arrangement uses an off-exchange collateral model, meaning users do not need to move their assets directly onto the exchange. Instead, the regulated custody platform ByCustody holds the assets, while their value is mirrored within the Bybit trading environment. This approach is designed to unlock trading liquidity without requiring the movement of the underlying funds.

The shares are issued via the Benji Technology Platform, which serves as the firm’s proprietary blockchain-integrated infrastructure for record keeping and transfer agency. According to the latest seven-day rate, the Benji platform currently provides an annualized yield of 3.7%.

Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton, noted that the expansion allows investors to optimize their collateral usage across major exchanges. She described the development as a critical step for ecosystem growth and a way for the firm to design products specifically for wallet-based investing.

This move follows similar integrations by Franklin Templeton on other platforms, including Binance and OKX. The broader industry is seeing increased adoption of tokenized funds as collateral, with other exchanges like Crypto.com and Deribit allowing professional and institutional users to leverage BlackRock’s BUIDL fund for trading, including derivatives positions.

The tokenized money market fund shares involved in the program represent approximately $686 million in net assets.

## Sources

- [Coindesk](https://www.coindesk.com/business/2026/09/28/crypto-friendly-institution-franklin-templeton-brings-its-tokenized-collateral-service-to-bybit)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/franklin-templeton-brings-tokenized-collateral-service-to-bybit