Franklin Templeton has collaborated with Bybit on an initiative that permits institutional investors to utilize tokenized shares of its money market funds as trading collateral, thereby extending their utility past basic buy-and-hold strategies.
The organizations revealed on Monday that qualified customers can mortgage fund units distributed via Franklin Templeton’s Benji system while these holdings stay in custody outside the exchange. Consequently, users can obtain credit facilities priced in USDT or USDC stablecoins to execute trades on Bybit without liquidating the fund shares or moving them onto the platform.
This mechanism enables institutions to maintain yield accumulation on their money market fund positions while leveraging those holdings to fund digital asset trading.
Franklin Templeton and Bybit are additionally developing a tokenized investment vehicle aimed at wallet participants across Bybit and the Mantle network, though specifics have not yet been shared.
This launch arrives as interest in tokenized money market funds has expanded substantially, with the Bank for International Settlements estimating the sector’s worth at over $9 billion as of September 2025.
Franklin Templeton’s Benji ecosystem held $1.98 billion in managed assets as of April, though that total has subsequently dropped to roughly $669 million, based on RWA.xyz statistics.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) stands as the premier tokenized money market fund at $2.2 billion and is supported as margin on Crypto.com and Deribit, whereas Binance permits institutional participants to employ BUIDL as external custody margin.
Related: Crypto Biz: Wall Street and crypto fight for the same turf
Originally published at https://cointelegraph.com/news/bybit-accepts-franklin-templeton-tokenized-funds-trading-collateral?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
