Franklin Templeton and Binance have announced the launch of an innovative institutional off-exchange collateral program. This initiative allows tokenized money market fund shares, issued through Franklin Templeton”s Benji platform, to serve as collateral for trading activities on the Binance platform.
The primary objective of this program is to facilitate the introduction of traditional regulated assets into the digital markets while mitigating the risks associated with exchange custody. This strategic move aims to enhance the security and efficiency for institutional investors accessing cryptocurrency trading.
Under the structure of the program, institutional clients can utilize the tokenized money market funds issued on the Benji platform as off-exchange collateral. These tokenized assets will remain securely held in regulated custody, and their value will be mirrored within the Binance trading ecosystem. This approach significantly reduces counterparty risk, allowing investors to earn yield on conventional financial instruments while engaging in digital markets.
The operational framework for custody and settlement is supported by Binance”s institutional partner, Ceffu, which is committed to ensuring high security and compliance with regulatory standards. Roger Bayston, the Head of Digital Assets at Franklin Templeton, emphasized that this collaboration is designed to make digital finance more accessible and operationally efficient for institutional clients. He stated, “This program allows clients to deploy their assets safely and efficiently while generating yield, demonstrating how tokenized real-world assets can integrate seamlessly with modern trading platforms.”
Catherine Chen, Head of VIP & Institutional at Binance, highlighted the significance of this collaboration in bridging traditional financial instruments with blockchain technology. The introduction of tokenized off-exchange collateral is expected to enhance capital efficiency and create new opportunities for institutional investors. By leveraging the Benji platform to tokenize money market funds, Franklin Templeton and Binance are setting a precedent that combines regulatory oversight with the speed and efficiency of digital finance, ultimately making institutional trading in cryptocurrency markets safer and more accessible.
This initiative also supports continuous settlement, broadening the array of yield-bearing assets available to institutions and reinforcing the integration of traditional finance into blockchain-powered markets. The forward-thinking nature of this program represents a critical step in the evolution of institutional engagement with digital assets.
In related news, Binance controls a substantial portion of the stablecoin USD1, holding approximately 87% of its total supply, which amounts to about $4.7 billion out of the stablecoin”s $5.4 billion market value, according to data from Arkham Intelligence. This underscores the exchange”s significant influence within the cryptocurrency ecosystem.
