Franklin Templeton and Binance Unveil Pioneering Institutional Off-Exchange Collateral Program

Global investment leader Franklin Templeton and Binance, the world’s leading cryptocurrency exchange by trading volume and users, today jointly announced the launch of a groundbreaking Institutional Off-Exchange Collateral Program. This innovative initiative is poised to significantly elevate security and capital efficiency within digital asset markets.

Now officially live, the program enables eligible institutional clients to utilize tokenized Money Market Fund (MMF) shares – issued via Franklin Templeton’s advanced Benji technology platform – as off-exchange collateral for their trading activities on Binance.

This solution directly addresses a critical and long-standing pain point for institutional traders: the ability to deploy regulated, yield-generating traditional money market fund assets within digital markets without the necessity of depositing these assets directly onto an exchange. This mechanism effectively mitigates counterparty risk, offering institutions a secure pathway to earn yield while supporting their trading strategies, all without compromising on custody, liquidity, or regulatory safeguards.

Through this sophisticated framework, the value of fund shares issued on the Benji platform is seamlessly mapped into Binance’s trading environment, while the actual tokenized assets remain securely held in a regulated off-exchange custody arrangement. This design ensures robust protection and control over the underlying assets.

Roger Bayston, Head of Digital Assets at Franklin Templeton, commented on the collaboration: “Since establishing a partnership with Binance in 2025, our unwavering commitment has been to make digital finance truly accessible and serviceable for institutions.”

“This off-exchange collateral program is a concrete manifestation of that commitment: empowering clients with the flexibility to deploy assets within a regulated custody environment, simultaneously generating yield in novel and secure ways. This is precisely what the Benji platform was designed to achieve, and our collaboration with a partner like Binance enables us to bring this vision to scale.”

Catherine Chen, Head of VIP & Institutional at Binance, added: “Our collaboration with Franklin Templeton to integrate tokenized real-world assets for off-exchange collateral settlement marks a natural and pivotal step in our mission to converge digital assets with traditional finance. The innovative application of traditional financial instruments on-chain not only unlocks new opportunities for investors but also powerfully demonstrates how blockchain technology can dramatically enhance market efficiency.”

Assets participating in this program will continue to reside in a regulated off-exchange custody environment, with their tokenized Money Market Fund shares serving as collateral for trading on Binance. The robust custody and settlement infrastructure is expertly supported by Ceffu, Binance’s institutional-grade, crypto-native custody partner.

Ian Loh, CEO of Ceffu, emphasized the importance of the solution: “Institutional investors are increasingly seeking trading models that prioritize rigorous risk management without sacrificing capital efficiency. This program exemplifies how an off-exchange collateral mechanism can effectively support institutional participation in digital markets while upholding stringent custody and control standards.”

The introduction of this institutional-grade off-exchange collateral program further expands the respective off-exchange partner networks of Franklin Templeton and Binance. It represents another significant milestone since the two entities announced their strategic cooperation in September 2025.

By integrating tokenized Money Market Funds via the Benji platform, Franklin Templeton is successfully bridging trusted traditional investment products into modern financial market architectures. This empowers institutions to conduct trading, manage risk, and allocate capital more efficiently as digital finance progressively becomes an integral part of the global financial system’s daily operations.

The availability of more tokenized real-world assets on Binance addresses the growing institutional market demand for stable, yield-generating collateral assets that support 24/7 settlement. This offers investors greater choice and significantly elevates their trading experience on the world’s largest compliant digital asset trading platform.

Franklin Templeton stands as a pioneering institution in digital asset investment and blockchain innovation. Since 2018, the firm has consistently delivered cutting-edge solutions by synergizing tokenomics research, data science, and technological expertise. For more information, please visit: Franklin Templeton Digital Assets.

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