Franklin Templeton, Binance Launch Tokenized Collateral Access

Franklin Templeton and Binance have launched a new program for institutional traders. The offering lets firms use tokenized shares of money market funds as trading collateral. The shares come from Franklin Templeton’s Benji platform and remain in off-exchange custody.

The launch went live on February 11. Under the setup, institutions can trade on Binance while their assets stay in regulated custody. The structure aims to improve capital efficiency and reduce counterparty risk. It also marks the first major product from the two firms’ strategic partnership announced in 2025.

How the Collateral System Works

The new system uses tokenized money market fund shares as collateral. These tokens represent stable, low-risk assets held off the exchange. Instead of moving funds onto the trading platform, institutions keep them in regulated custody. Binance’s institutional custody partner “Ceffu” handles the asset storage. The custody takes place in a regulated environment designed for large clients. Meanwhile, the collateral value appears on Binance’s trading platform.

This setup allows institutions to trade while keeping their core assets safe. It also means they can continue earning yield from the money market funds. The structure targets hedge funds, asset managers and banks. The main advantage is reduced risk. Institutions avoid full on-exchange exposure while still accessing crypto liquidity.

Benji Platform and Early Tokenization Efforts

The tokenized assets come from Franklin Templeton’s Benji platform. The company launched this system several years ago to bring traditional funds onto blockchain rails. Through Benji, Franklin Templeton created one of the first tokenized U.S. government money market funds. Investors can hold shares as blockchain based tokens instead of traditional fund units.

Franklin Templeton manages more than a trillion dollars in assets globally. The firm has spent years experimenting with tokenization and blockchain settlement. The new program with Binance builds on that earlier work. Additionally, it shows how tokenized real-world assets are moving into active trading use cases.

Part of a Broader Institutional Strategy

The launch follows a strategic partnership announced in September 2025. At the time, both companies said they wanted to connect traditional finance with crypto markets. This new collateral program is the first major step in that plan. It gives institutions a way to use stable assets while trading digital markets. The model could also improve collateral efficiency. Instead of leaving funds idle, institutions can keep them in yield bearing instruments.

Industry observers see this as part of a larger trend. Tokenized real-world assets are gaining traction across finance. Many firms now test ways to use them for settlement, lending and trading. For now, the program targets institutional clients only. But it shows how traditional assets and crypto platforms are starting to connect more directly.

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