Binance and Franklin Templeton Advance Strategic Collaboration with Institutional Collateral Program

WHY THIS MATTERS:

Institutional participation in crypto markets has long been constrained by a structural trade-off: capital efficiency versus custody risk. To trade actively, institutions typically need to pre-fund exchanges — exposing assets to counterparty risk — or accept idle capital that earns little yield. By enabling tokenized money market fund (MMF) shares to serve as off-exchange collateral, Franklin Templeton and Binance are addressing both constraints simultaneously. Institutions can now deploy regulated, yield-bearing assets as trading collateral while keeping them in segregated, regulated custody. This model strengthens risk controls, preserves regulatory protections, and improves balance sheet efficiency — all critical requirements for institutional-scale digital asset trading.

Franklin Templeton, a global investment leader and Binance (www.Binance.com), the world’s leading cryptocurrency exchange by trading volume and users, announced a new institutional off-exchange collateral program, making digital markets more secure and capital-efficient. Now live, eligible clients can use tokenized money market fund shares issued through Franklin Templeton’s Benji Technology Platform as off-exchange collateral when trading on Binance.

The program alleviates a long-standing pain point for institutional traders by allowing them to use traditional regulated, yield-bearing money market fund assets in digital markets without parking those assets on an exchange. Instead, the value of Benji-issued fund shares is mirrored within Binance’s trading environment, while the tokenized assets themselves remain securely held off-exchange in regulated custody. This reduces counterparty risk, letting institutional participants earn yield and support their trading activity without hedging on custody, liquidity, or regulatory protections.

“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.”

Assets participating in the program remain held off-exchange in a regulated custody environment, with tokenized money market fund shares pledged as collateral for trading on Binance. Custody and settlement infrastructure is supported by Ceffu, Binance’s institutional crypto-native custody partner.

“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.”

Launching the institutional off-exchange collateral program expands on both Franklin Templeton’s and Binance’s growing networks of off-exchange program partners and represents another effort since announcing Franklin Templeton and Binance’s strategic collaboration in September 2025.

By using Benji to bridge tokenized money market funds, Franklin Templeton is taking trusted investment products and making them work in modern markets—allowing institutions to trade, manage risk, and move capital more efficiently as digital finance becomes an everyday part of the financial system.

Offering more tokenized real-world assets on Binance meets the increasing institutional demand for stable, yield-bearing collateral that can settle 24/7. This gives investors greater choice and enhances their trading experience on the world’s largest regulated digital asset exchange.

Franklin Templeton is a pioneer in digital asset investing and blockchain innovation, combining tokenomics research, data science, and technical expertise to deliver cutting-edge solutions since 2018. Learn more at Franklin Templeton Digital Assets.

FF NEWS TAKE:
This is another clear signal that tokenized real-world assets (RWAs) are moving from concept to functional infrastructure. The innovation isn’t just tokenization itself — it’s the integration into trading workflows. By mirroring the value of Benji-issued MMF shares inside Binance while keeping the assets off-exchange, the program blends traditional asset management discipline with crypto-native execution speed.

If digital markets are to attract deeper institutional liquidity, they must offer structures that feel operationally familiar to banks, asset managers and hedge funds. Off-exchange collateral, regulated custody, and yield-bearing assets working in 24/7 markets represent exactly that bridge.

The broader implication? Tokenized funds are increasingly becoming programmable collateral — not just investment products. And as exchanges compete for institutional flows, the ability to integrate trusted, regulated assets into trading environments without increasing counterparty exposure may become a defining competitive advantage.