Global investment leader Franklin Templeton and cryptocurrency exchange Binance have launched an institutional off-exchange collateral program, allowing eligible clients to utilize tokenized money market fund shares issued via Franklin Templeton’s Benji Technology Platform as collateral for trading on Binance, while maintaining assets in regulated off-exchange custody.
This initiative addresses a long-standing challenge for institutional traders by enabling them to deploy regulated, yield-bearing money market fund assets in digital markets without directly depositing them onto an exchange. The program mirrors the value of the Benji-issued fund shares within Binance’s trading environment, while the actual tokenized assets remain securely held off-exchange. This structure aims to mitigate counterparty risk, enabling institutional participants to earn yield and support their trading activities without compromising custody, liquidity, or regulatory protections.
Roger Bayston, Head of Digital Assets at Franklin Templeton, stated, “Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions. Our off-exchange collateral program is just that: letting clients easily put their assets to work in regulated custody while safely earning yield in new ways. That’s the future Benji was designed for, and working with partners like Binance allows us to deliver it at scale.”
Catherine Chen, Head of VIP & Institutional at Binance, commented on the development, saying, “Partnering with Franklin Templeton to offer tokenized real-world assets for off-exchange collateral settlement is a natural next step in our mission to bring digital assets and traditional finance closer together. Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors and shows just how blockchain technology can make markets more efficient.”
Custody and settlement infrastructure for the program is supported by Ceffu, Binance’s institutional crypto-native custody partner. Ian Loh, CEO of Ceffu, emphasized the importance of the offering: “Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency. This program demonstrates how off-exchange collateral can support institutional participation in digital markets while maintaining strong custody and control.” For the purposes of this program, custody services for Benji-issued tokenized money market fund shares are provided by Ceffu Custody FZE, a virtual asset custodian licensed and supervised in Dubai.
This institutional off-exchange collateral program builds upon the strategic collaboration between Franklin Templeton and Binance, first announced in September 2025. By using the Benji Technology Platform to bridge tokenized money market funds, Franklin Templeton aims to integrate trusted investment products into modern digital markets, facilitating more efficient trading, risk management, and capital movement for institutions as digital finance becomes increasingly integral to the financial system. The offering also addresses the growing institutional demand for stable, yield-bearing collateral that can settle 24/7 on regulated digital asset exchanges.
Franklin Templeton, a global investment firm founded in 1947 with over $1.7 trillion in assets under management as of January 31, 2026, has been involved in digital asset investing and blockchain innovation since 2018. Binance operates as a leading global blockchain ecosystem, serving over 300 million users across more than 100 countries as the world’s largest cryptocurrency exchange by trading volume. Ceffu is an institutional-grade custody platform providing ISO 27001 & 27701 certified and SOC2 Type 2 attested custody and liquidity solutions, utilizing multi-party computation (MPC) technology.
All investments, including money funds, involve risk, including the potential loss of principal. Risks are associated with the issuance, redemption, transfer, custody, and record-keeping of shares maintained primarily on a blockchain. For instance, shares issued using blockchain technology are subject to risks related to the rapidly evolving regulatory landscape, which could necessitate changes in how transactions are recorded due to security, privacy, or other regulatory concerns.
