Franklin Templeton and Binance have launched a new institutional off-exchange collateral program that allows eligible clients to use tokenized money market fund shares issued via Franklin Templeton’s Benji Technology Platform as collateral when trading on Binance.
The program is designed to improve capital efficiency while reducing counterparty risk by keeping assets held off-exchange in third-party custody, with collateral value mirrored within Binance’s trading environment using Ceffu’s custody layer.
The initiative builds on Franklin Templeton and Binance’s strategic collaboration announced in September 2025 and reflects the convergence between TradFi and digital assets.
Today, we’re pleased to announce a new institutional off-exchange collateral program in collaboration with global investment leader Franklin Templeton, making digital markets more secure and capital-efficient.
This initiative builds on Franklin Templeton and Binance’s strategic collaboration announced in 2025 and reflects the convergence between TradFi and digital assets.
Now live, eligible clients can use tokenized money market fund (MMF) shares issued through Franklin Templeton’s Benji Technology Platform as off-exchange collateral when trading on Binance through the custody and settlement infrastructure provided by Ceffu, Binance’s institutional crypto-native custody partner.
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 third-party 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 third-party 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 as off-exchange collateral 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."
The program aligns with broader institutional trends: demand is rising for stable, yield-bearing collateral that can support 24/7 settlement cycles and integrate into existing governance and risk frameworks.
As Ian Loh, CEO of Ceffu, observed: “Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency.”
Tokenized money market funds are one example of how traditional products can be adapted for modern market structure, enabling institutions to manage risk and deploy capital more efficiently as digital finance becomes a regular part of the financial system.
Institutional adoption depends on market infrastructure that fits institutional needs. 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.
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