- Franklin Templeton and Binance launch off-exchange collateral program for institutions.
- Tokenized money market funds can be used as trading collateral while staying in regulated custody.
- Ceffu provides secure custody, reducing counterparty risk and improving capital efficiency.
Franklin Templeton and Binance have launched a new institutional off-exchange collateral program that allows eligible clients to use tokenized money market fund (MMF) shares as trading collateral on Binance.
The initiative enables institutions to deploy Benji-issued tokenized MMF shares without transferring assets onto the exchange. Notably, the program is now live.
Tokenized Money Market Funds Used as Trading Collateral
Through Franklin Templeton’s Benji Technology Platform, institutions can tokenize regulated, yield-bearing money market fund shares and use them as off-exchange collateral when trading on Binance.
Instead of parking assets directly on the exchange, the tokenized fund shares remain in regulated custody. Their value is mirrored within Binance’s trading environment, allowing institutions to maintain custody protections while gaining trading exposure.
This structure allows institutional participants to:
- Retain regulated custody of assets
- Reduce exchange counterparty risk
- Continue earning yield on money market funds
- Improve capital efficiency in digital markets
Roger Bayston, Head of Digital Assets at Franklin Templeton, said the collaboration seeks to make digital finance “actually work for institutions” by enabling clients to safely earn yield while deploying capital in crypto markets.
Ceffu Provides Custody Infrastructure
Custody and settlement for the program are supported by Ceffu, Binance’s institutional crypto-native custody partner.
Assets remain off-exchange in a regulated custody environment, with tokenized MMF shares pledged as collateral for trading. For this program, custody services are provided by Ceffu Custody FZE, a Dubai-licensed virtual asset custodian.
Ian Loh, CEO of Ceffu, said institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency, adding that the structure supports institutional participation while maintaining strong custody controls.
Expanding Tokenized Real-World Assets on Binance
The program builds on Franklin Templeton and Binance’s September 2025 strategic collaboration and expands their network of off-exchange program partners.
By integrating tokenized real-world assets (RWAs) such as money market funds into Binance’s trading ecosystem, the firms aim to bridge traditional finance and digital assets.
Catherine Chen, Head of VIP & Institutional at Binance, described the initiative as a step toward bringing traditional financial instruments on-chain, unlocking new efficiencies for investors.
The move also reflects growing institutional demand for stable, yield-bearing collateral that can settle 24/7 while maintaining regulatory safeguards.
Institutional Adoption of Tokenized Finance Accelerates
Franklin Templeton, which manages more than $1.7 trillion in assets as of January 31, 2026, has been active in blockchain-based investment products since 2018. The Benji platform plays a central role in its strategy to bring regulated investment products into digital markets.
For Binance, the program enhances its institutional offering by combining crypto-native trading infrastructure with traditional financial assets.
Related: Not Just a Science Experiment”: Ripple CEO Says Tokenization Has Grown Up
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Source: https://coinedition.com/franklin-templeton-binance-launch-off-exchange-collateral-program-for-institutions/
