CMC News

#FranklinTempleton and Binance Launch MMF Collateral Program

Franklin Templeton has launched an institutional off-exchange #collateral program with Binance that allows clients to use tokenized money market fund shares for trading while keeping underlying #assets in regulated custody. The framework aims to reduce counterparty risk by reflecting collateral balances inside Binance's trading environment without moving client assets onto the exchange.

Eligible institutions can pledge tokenized MMF shares issued through Franklin Templeton's Benji Technology Platform as collateral for Binance trading activity. Ceffu Custody, a digital asset custodian #licensed and supervised in Dubai, holds the tokenized fund shares off-exchange while their collateral value is mirrored on Binance to support trading positions.

Franklin Templeton stated the model enables institutions to earn yield on regulated money market fund holdings while using the same assets to support digital asset trading. Clients retain existing custody and regulatory protections throughout the process.

Roger Bayston, head of digital assets at Franklin Templeton, explained that the off-exchange collateral program lets clients put their assets to work in regulated custody while safely earning yield in new ways. The initiative builds on a strategic collaboration between Binance and Franklin Templeton announced in 2025 to develop #tokenization products that combine regulated fund structures with global trading infrastructure.

The design mirrors other tokenized real-world asset collateral models in crypto markets. BlackRock's BUIDL tokenized U.S. Treasury fund, issued by Securitize, is accepted as trading collateral on Binance and other platforms, including Crypto(dot)com and Deribit.