Bybit Lets Institutions Use Franklin Templeton Tokenized Fund Shares As Collateral

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure TL;DR Bybit and Franklin Templeton have launched an off-exchange collateral program for eligible institutional clients. Tokenized money-market fund shares issued through Franklin Templeton’s Benji platform can be pledged while clients trade on Bybit. The structure lets institutions keep collateral in regulated custody rather than moving the assets directly onto the exchange. Bybit is giving institutional traders a way to use tokenized fund shares as collateral without depositing those assets directly onto the exchange. The crypto platform announced a strategic collaboration with Franklin Templeton on September 28, starting with an off-exchange collateral program built around tokenized money-market fund shares issued through Franklin Templeton’s Benji platform. Collateral Can Stay Outside The Exchange The structure is aimed at eligible institutional clients. Rather than transferring all of their collateral into an exchange account, participants can hold qualifying tokenized fund shares through the supported custody structure and pledge them against trading activity on Bybit. That is i...