Binance and Franklin Templeton have launched an institutional off-exchange collateral program that enables eligible clients to use tokenized money market fund shares as collateral when trading digital assets.
The initiative allows institutional participants to pledge tokenized shares of money market funds issued through Franklin Templeton’s Benji Technology Platform, while keeping the underlying assets held off-exchange in regulated custody. The value of those shares is mirrored within Binance’s trading environment, enabling trading activity without transferring the assets directly onto the exchange.
According to the companies, the structure addresses a longstanding challenge for institutional traders seeking to deploy traditional, yield-bearing assets in crypto markets without increasing counterparty exposure. By holding tokenized fund shares in regulated custody and reflecting their value on Binance, institutions can maintain custody protections while participating in digital asset trading.
“Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions,” said Roger Bayston, Head of Digital Assets at Franklin Templeton. “Our off-exchange collateral program is just that: letting clients easily put their assets to work in regulated custody while safely earning yield in new ways. That’s the future Benji was designed for, and working with partners like Binance allows us to deliver it at scale.”
“Partnering with Franklin Templeton to offer tokenized real-world assets for off-exchange collateral settlement is a natural next step in our mission to bring digital assets and traditional finance closer together,” said Catherine Chen, Head of VIP & Institutional at Binance. “Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors and shows just how blockchain technology can make markets more efficient.”
Custody and settlement infrastructure for the program is supported by Ceffu, Binance’s institutional custody partner. For the purposes of the program, custody services for Benji-issued tokenized money market fund shares are provided by Ceffu Custody FZE, a virtual asset custodian licensed and supervised in Dubai.
“Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency,” said Ian Loh, CEO of Ceffu. “This program demonstrates how off-exchange collateral can support institutional participation in digital markets while maintaining strong custody and control.”
The launch builds on the strategic collaboration announced by Binance and Franklin Templeton in September 2025. Both firms have expanded their respective off-exchange networks as institutional demand grows for tokenized real-world assets that can be used as stable, yield-bearing collateral in 24/7 digital markets.
Franklin Templeton, founded in 1947, manages more than $1.7 trillion in assets as of January 31, 2026, and has been active in digital asset investing and blockchain-related initiatives since 2018. Binance, which describes itself as the world’s largest cryptocurrency exchange by trading volume and users, operates a global blockchain ecosystem serving more than 300 million users across 100+ countries.
The companies note that all investments, including money market funds, involve risk, including possible loss of principal. Tokenized fund shares recorded on blockchain infrastructure are also subject to evolving regulatory, security, and operational risks related to issuance, redemption, transfer, custody, and recordkeeping.
