Franklin Templeton has partnered with crypto exchange Bybit to allow institutional investors to use tokenized money market fund (MMF) shares as trading collateral. Franklin Templeton issues the shares through its Benji platform. Client assets remain in off-exchange custody and never move to the exchange.
Institutional clients receive credit line facilities in USDT or USDC directly from Bybit. They are free to use those funds to trade on the exchange without needing to sell or transfer ownership of the underlying fund shares. This new arrangement ensures institutions continue earning yield from the MMF while deploying its value as crypto trading capital.
Competition in the $9 Billion Market
The two companies’ move comes amid rapid expansion in the tokenized real-world asset market. The Bank for International Settlements (BIS) noted that the market value of tokenized money market funds has surpassed $9 billion as of September 2025.
The Benji platform currently commands a portion of that market, with approximately $669 million in assets under management according to data from RWA.xyz. The latest figures mark a decline from its assets under management in April, which briefly touched $1.98 billion.
Bybit’s decision to accept Benji assets follows a trend among rival exchanges embracing BlackRock’s funds. BlackRock’s flagship $2.2 billion BUIDL token was already accepted as collateral on Crypto.com and Deribit. Binance has also allowed institutional clients to use BUIDL as off-exchange collateral.
Expansion Plans to Mantle
The collaboration is set to expand even further. Franklin Templeton and Bybit are preparing to structure tokenized investment products aimed at Bybit wallet users and the Mantle network. Neither entity has released specific details regarding the structure or release schedule for these upcoming products.
Traditional fund shares are now officially serving as working capital in the crypto market. Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
