News DeskSan Mateo, California / Abu Dhabi, UAE: Franklin Templeton and cryptocurrency exchange Binance have unveiled a new institutional off-exchange collateral program aimed at strengthening security and improving capital efficiency across digital asset markets.
The initiative, which is now live for eligible clients, enables institutional traders to use tokenized shares of money market funds issued through Franklin Templeton’s Benji Technology Platform as collateral while trading on Binance — without needing to move those assets onto the exchange itself.
Market participants have long cited the requirement to hold assets directly on trading platforms as a key operational and risk concern. The newly launched structure seeks to address that challenge by allowing tokenized fund shares to remain securely held within regulated custody environments, while their value is reflected inside Binance’s trading ecosystem. This approach is designed to reduce counterparty exposure while allowing institutions to continue earning yield on their underlying assets.
Roger Bayston, Head of Digital Assets at Franklin Templeton, said the development reflects ongoing efforts between the firms to make digital finance more practical for large-scale investors. He noted that the program allows clients to deploy assets within regulated custody frameworks while simultaneously supporting trading activity and yield generation.
From Binance’s perspective, the collaboration marks another step toward integrating traditional financial instruments with blockchain-based markets. Catherine Chen, Head of VIP & Institutional at Binance, said enabling tokenized real-world assets to serve as off-exchange collateral demonstrates how blockchain infrastructure can enhance market efficiency and broaden investment opportunities.
Under the program’s structure, participating assets remain off-exchange while tokenized fund shares are pledged as trading collateral. Custody and settlement services are supported by Ceffu, Binance’s institutional custody partner.
Ian Loh, CEO of Ceffu, said institutional investors are increasingly seeking trading frameworks that balance robust risk management with efficient capital deployment. He added that off-exchange collateral models can support broader institutional engagement in digital markets without compromising asset control.
The rollout builds on Franklin Templeton and Binance’s strategic collaboration announced in September 2025 and expands both companies’ networks of off-exchange program partners.
Through its Benji platform, Franklin Templeton continues to explore ways to bring traditional investment products into digital environments, allowing institutions to manage risk and move capital more seamlessly as tokenization gains traction across financial markets.
For Binance, expanding access to tokenized real-world assets aligns with growing institutional demand for stable, yield-bearing collateral that can support continuous, around-the-clock settlement — a feature increasingly viewed as essential within the evolving digital finance landscape.
Franklin Templeton has been active in blockchain and digital asset innovation since 2018, combining research, data science, and technical expertise as part of its broader push to modernize investment infrastructure.
