Franklin Templeton Brings Tokenized Collateral Service to Bybit
Eligible users can pledge tokenized money-market fund shares for USDT or USDC trading credit while the underlying assets remain in custody and continue generating yield.
Franklin Templeton is bringing its tokenized money-market fund collateral service to Bybit, allowing eligible users to borrow USDT or USDC trading credit while keeping the underlying assets in custody.
ByCustody will hold the assets off-exchange, while their value is reflected in Bybit’s trading environment. The structure allows users to pledge the fund shares without transferring the underlying holdings to the exchange.
The shares are issued through Franklin Templeton’s Benji Technology Platform and represent about $686 million in net assets. Benji’s latest seven-day annualized yield was 3.7% as of Sept. 28.
The expansion follows a similar Franklin Templeton program with Binance, in which tokenized money-market fund shares are held through Ceffu custody while supporting trading activity.
The Bybit arrangement links tokenized traditional assets with crypto-market borrowing and trading, giving users access to trading credit while the pledged fund shares remain off-exchange.
