Bybit and Franklin Templeton announced a strategic collaboration on Monday, beginning with a structure that allows eligible clients to use tokenized shares of Franklin Templeton money market funds as off-exchange collateral for trades on Bybit without depositing those assets onto the exchange.
How the collateral structure works
The first part of the partnership covers tokenized money market fund shares issued through Benji, Franklin Templeton’s blockchain-based recordkeeping and transfer agency platform. Clients pledge those fund shares through custody platform ByCustody and, in return, receive USDT or USDC trading credit lines on Bybit.
The shares do not move onto the exchange. Bybit said it mirrors their value inside its trading system, allowing clients to trade against that value while the underlying fund continues to pay yield.
Bybit said keeping the assets off the exchange reduces clients’ counterparty exposure.
In the release, Franklin Templeton head of digital assets and innovation Sandy Kaul said, 「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.」
Similar programs have already appeared at other exchanges
This is not the first arrangement of its kind involving Franklin Templeton’s tokenized money market funds. In April 2025, OKX and Standard Chartered launched a pilot that accepted the funds as off-exchange collateral, with the bank acting as custodian. In February 2025, Franklin Templeton and Binance launched a similar program for institutional clients, with Binance custody partner Ceffu holding the assets.
Bybit global head of RWA and TradFi Yoyee Wang said in the release, 「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.」
The partnership goes beyond collateral
The companies said the Bybit arrangement extends beyond collateral use. Franklin Templeton, which manages $1.7 trillion, also plans a tokenized wealth product for investors who hold assets in crypto wallets. That product is expected to be available on Bybit and on the Mantle chain.
Bybit and Mantle will share more details separately, according to the companies. They also said they plan to run education programs for retail investors.
Timing of the announcement
The announcement came days after staff at the U.S. Commodity Futures Trading Commission, or CFTC, allowed futures brokers to invest customer funds in tokenized assets.