Institutions can now leverage Benji-issued tokenized money market funds as off-exchange collateral for trading on Binance, utilizing Ceffu’s custody infrastructure.
Binance, the world’s largest cryptocurrency exchange, has partnered with crypto-friendly traditional finance firm Franklin Templeton to launch an institutional off-exchange collateral program aimed at enhancing security and capital efficiency in digital markets.
Through this initiative, eligible clients can use tokenized money market fund shares issued via Franklin Templeton’s Benji Technology Platform as off-exchange collateral for trading on Binance, leveraging Ceffu, the exchange’s partner custody solution.
According to a press release, the program addresses a long-standing challenge for institutional traders by enabling them to use traditional, regulated, yield-generating money market fund assets in digital markets without having to hold them directly on an exchange.
While the value of Benji-issued fund shares is represented within Binance’s trading platform, the tokenized assets themselves remain securely stored off-exchange in regulated custody. This setup lowers counterparty risk, allowing institutional participants to earn yield and support trading activity without worrying about custody, liquidity, or regulatory safeguards, the firms noted.
“Collaborating with Franklin Templeton to provide tokenized real-world assets for off-exchange collateral settlement is a natural progression in our mission to bridge digital assets and traditional finance,” said Catherine Chen, Head of VIP & Institutional at Binance.
