New Binance–Franklin Templeton Institutional Program Enables Off‑Exchange Collateralization Of Tokenized MMFs
In Brief
Binance and Franklin Templeton have expanded their collaboration to introduce an institutional off‑exchange collateral program using tokenized money market fund shares.
Cryptocurrency exchange Binance announced that in collaboration with Franklin Templeton it has introduced an institutional off‑exchange collateral program, which is supported by the custody and settlement infrastructure operated by Ceffu, the institutional crypto‑native custody partner associated with Binance.
Through this arrangement, eligible clients are now able to use tokenized money market fund shares issued through Franklin Templeton’s Benji Technology Platform as off‑exchange collateral when conducting trading activity on Binance.
The institutional off‑exchange collateral program is described as addressing a long‑standing challenge for institutional market participants by enabling the use of traditional, regulated, yield‑bearing money market fund assets within digital‑asset markets without requiring those assets to be held directly on an exchange.
Instead, the value of the Benji‑issued fund shares is reflected within Binance’s trading environment while the tokenized assets themselves remain securely maintained off‑exchange under third‑party custody. This structure reduces counterparty exposure and allows institutional users to earn yield while supporting their trading operations without transferring assets onto the exchange.
It also aligns with broader institutional trends, including the growing demand for stable, yield‑generating collateral that can operate within continuous settlement cycles and integrate with established governance and risk‑management frameworks.
Eligible participants are able to access Binance’s institutional off‑exchange settlement services and begin trading using Benji‑issued money market fund shares that remain held off‑exchange. Institutions can initiate participation by contacting their assigned account manager or by completing the provided onboarding form.
Binance And Franklin Templeton To Advance Tokenized Financial Products And Bridge TradFi With Blockchain Markets
Binance and Franklin Templeton announced a strategic partnership in September 2025, focused on developing a series of digital‑asset initiatives and tokenized financial products. The collaboration was presented as an effort to connect traditional financial systems with blockchain‑based markets.
The partnership includes a commitment to jointly create new blockchain‑enabled financial solutions for global investors, combining Franklin Templeton’s experience in compliant tokenization of securities with Binance’s global trading infrastructure and extensive user base.
The initiative concentrates on improving efficiency and transparency within digital markets, accelerating settlement processes, expanding access to competitive yield opportunities, and broadening investor participation in tokenized assets. Additional product releases were anticipated later in 2025 as part of the ongoing rollout.
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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.
