Franklin Templeton expands tokenized collateral service to Bybit

Franklin Templeton is bringing its tokenized collateral program to Bybit, extending a service that lets institutional traders park yield-bearing assets with a regulated custodian while still using them as trading collateral. The move follows a similar arrangement with Binance that went live on February 11, 2026. Two of the world’s largest crypto exchanges now accept Franklin Templeton’s BENJI tokens as off-exchange collateral. How the Benji model actually works Franklin Templeton’s Benji platform issues BENJI tokens on a strict one-to-one ratio with shares in its Franklin OnChain U.S. Government Money Fund, known as FOBXX. The institution hands over its assets, receives a token that proves ownership, and that token can then be posted as collateral at a trading venue without the assets ever leaving a regulated custodian. The trader earns yield the whole time. Traditional collateral arrangements typically require moving assets onto an exchange, which creates counterparty risk and earns nothing. The Benji structure keeps assets with a third-party custodian, keeps them earning, and keeps them legally protected. Roger Bayston, Franklin Templeton’s Head of Digital Assets, has framed this...