Bybit And Franklin Templeton Unite To Bridge Regulated Asset Management And On-Chain Markets
Cryptocurrency exchange Bybit announced a strategic collaboration with Franklin Templeton, a global asset manager overseeing $1.7 trillion in assets and an early mover in digital asset innovation. The first outcome of the partnership enables eligible clients to deploy tokenized money market fund shares as off-exchange collateral for trading on the platform.
Under the arrangement, qualifying investors can pledge fund shares issued through the Benji Technology Platform, Franklin Templeton’s proprietary blockchain-based recordkeeping and transfer agency system, via ByCustody, Bybit’s institutional-grade custody solution. This grants access to USDT or USDC trading credit lines while the underlying tokenized assets remain held in custody off-exchange. The collateral’s value is mirrored within Bybit’s trading environment, enabling clients to keep earning yield on their holdings while using them to support trading positions.
“As institutional adoption of digital assets accelerates, investors increasingly expect the same flexibility, capital efficiency, and risk management standards they are accustomed to in traditional markets,” said Yoyee Wang, Global Head of RWA and TradFi at Bybit in a written statement. “By expanding the range of high-quality collateral available through our off-exchange infrastructure, we are helping clients deploy capital more effectively while maintaining exposure to trusted, regulated investment products,” she added.
Extending Access to On-Chain Investors
The initiative forms part of Bybit’s broader institutional infrastructure, offering eligible clients an additional route to trading liquidity backed by regulated, yield-generating collateral without transferring those assets onto the exchange itself, thereby reducing counterparty exposure and strengthening capital efficiency and treasury management.
Beyond institutional clients, the collaboration reaches wallet-based investors through a tokenized wealth product offered on the Bybit exchange and the Mantle chain, providing exposure to Franklin Templeton investment strategies, with further details to be announced separately by Bybit and Mantle. The two firms also plan to launch digital content programs and educational initiatives intended to help retail investors holding assets in wallets engage with traditional investment strategies and deepen their understanding of concepts such as goals-based investing and diversification.
“Tokenization continues to reshape finance, and we’re excited to partner with Bybit to increase access to actively managed retail investment solutions that meet the evolving needs of the wallet ecosystem,” said Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton in a written statement. “For institutions, extending connectivity of the Benji Technology Platform to Bybit offers a trusted venue to put regulated, yield-bearing assets to work in digital markets, and is a great example of how blockchain-integrated solutions can drive innovation and efficiency across markets,” she added.
These programs represent the initial phase of a wider partnership designed to narrow the gap between regulated investment management and on-chain markets. For institutional participants, the objective is to bring the collateral, custody, and capital efficiency standards of traditional finance into a digital asset trading setting. For wallet-based investors, the aim is to provide access to professionally managed strategies, together with the educational resources needed to apply them, directly within the venues where their assets are held.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
