Franklin Templeton and Binance have introduced an institutional off-exchange collateral programme to enhance the security and capital efficiency of digital markets.

Under the programme, eligible clients in selected jurisdictions can use tokenized money market fund shares issued through Franklin Templeton’s Benji Technology Platform as off-exchange collateral when trading on the Binance cryptocurrency exchange.

The programme alleviates a long-standing pain point for institutional traders by allowing them to use traditional regulated, yield-bearing money market fund assets in digital markets without parking those assets on an exchange. Instead, the value of Benji-issued fund shares is mirrored within Binance’s trading environment, while the tokenized assets themselves remain securely held off-exchange in regulated custody. 

This reduces counterparty risk, letting institutional participants earn yield and support their trading activity without hedging on custody, liquidity, or regulatory protections.

“Since partnering in [September] 2025, our work with Binance has focused on making digital finance actually work for institutions,” says Roger Bayston, head of digital assets at Franklin Templeton. “Our off-exchange collateral programme 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.”

Bridging traditional, digital finance

“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,” adds Catherine Chen, head of VIP and institutional at Binance. “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.”

Assets participating in the programme remain held off-exchange in custody, arrangements provided by Ceffu, with tokenized money market fund shares pledged as collateral for trading on Binance.

“Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency,” says Ceffu chief executive officer Ian Loh. “This programme demonstrates how off-exchange collateral can support institutional participation in digital markets while maintaining strong custody and control.”

Franklin Templeton notes that by using Benji to bridge tokenized money market funds, it is making trusted investment products work in modern markets, allowing institutions to trade, manage risk, and move capital more efficiently as digital finance becomes an everyday part of the financial system.

Offering more tokenized real-world assets on Binance meets the growing institutional demand for stable, yield-bearing collateral that can settle 24/7. This gives investors greater choice and enhances their trading experience on the world’s largest digital asset exchange, Franklin Templeton adds.