Global investment manager Franklin Templeton and cryptocurrency exchange Binance have launched an institutional off-exchange collateral program, enabling institutional clients to utilize tokenized money market fund (MMF) shares as collateral for trading activities. This collaboration, initially announced in September 2025, seeks to enhance capital efficiency and reduce counterparty risk for professional traders. The program went live on February 11, 2026.
Under this new program, eligible institutional clients can use tokenized MMF shares issued through Franklin Templeton's Benji Technology Platform as off-exchange collateral when trading on Binance. These MMF shares remain held off-exchange in third-party custody, with their value mirrored within Binance's trading environment. This allows institutions to use regulated, yield-bearing assets as collateral without needing to transfer them directly onto the exchange. Custody and settlement are supported by Ceffu, Binance's institutional-grade, crypto-native custody partner.
The structure addresses a significant constraint in digital asset markets, where traders have traditionally been required to post idle capital directly on exchanges. By keeping assets off-exchange, the program reduces counterparty exposure while allowing participants to continue earning yield on their collateral. The use of tokenized MMF shares highlights the increasing interest in real-world asset (RWA) tokenization as institutions seek to bridge traditional finance products with digital market infrastructure. The program allows traders to potentially earn 4.5% yield on active collateral.
Binance has stated that this initiative reflects the growing institutional demand for stable, yield-generating collateral that can support continuous, 24/7 trading and settlement, while remaining compatible with existing governance, compliance, and risk management frameworks. SEC Commissioner Mark Uyeda said on Tuesday that the agency should avoid creating “unnecessary roadblocks” as tokenization moves from theory into practical market use.
This program marks the first major product from the strategic partnership between Franklin Templeton and Binance. Franklin Templeton has been updating money market funds to work with blockchain-based settlement systems, including structures aimed at meeting U.S. stablecoin reserve requirements. Franklin Templeton manages $1.6 trillion in assets.