Binance and Franklin Templeton have activated tokenized money market funds as off-exchange collateral, accelerating institutional adoption of cryptocurrency and strengthening the bridge between traditional finance and blockchain-based trading infrastructure.
Digital asset firms and asset managers are expanding institutional infrastructure as tokenization gains momentum. Cryptocurrency exchange Binance announced on February 11 that it has launched an off-exchange collateral program with Franklin Templeton, allowing eligible clients to use tokenized shares of money market funds as collateral for trading.
The program allows qualified institutions to deploy tokenized shares of Franklin Templeton money market funds through the Benji Technology platform while keeping the underlying assets in a third-party storage location rather than on-exchange.
Binance CEO Richard Teng shared on social media X:
“Today, Binance is proud to announce our first offering with Franklin Templeton. Institutional clients can now use tokenized shares of money market funds issued through the Benji Technology platform from Franklin Templeton as off-exchange collateral for trading on Binance, enhancing efficiency and bridging traditional finance and cryptocurrency.”
Roger Bayston, Head of Digital Assets at Franklin Templeton, stated: “Our off-exchange collateral program is precisely this: to allow clients to easily use their assets in a third-party storage location, safely earning income in new ways.” He added that this structure aims to provide operational assurances and regulatory compliance for institutions entering digital markets.
Catherine Chen, Head of VIP and Institutional Investing at Binance, explained that the integration of tokenized assets into trading processes demonstrates how blockchain infrastructure can connect traditional finance with cryptocurrency markets.
Under this agreement, the collateral value of the shares issued by Benji is reflected within the Binance trading system, while the tokenized assets remain separately off-exchange, a structure designed to reduce counterparty risk. Ceffu CEO Ian Lo noted that institutions are increasingly demanding trading models that prioritize risk management without sacrificing capital efficiency.
The release includes:
“Effective now: eligible clients can use tokenized shares of the money market fund (MMF) issued through the Benji Technology platform from Franklin Templeton as off-exchange collateral when trading on Binance through the storage and settlement infrastructure provided by Ceffu, Binance's institutional cryptocurrency custodian.”
The launch is based on a strategic partnership established in September 2025 and meets the growing institutional demand for stable, income-generating instruments that can support continuous settlements. As tokenization progresses, money market funds become a practical bridge between regulated financial products and blockchain-based trading venues.
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