Bybit Accepts Tokenized Money Market Fund Shares from Franklin Templeton
Bybit, a popular cryptocurrency exchange, has partnered with Franklin Templeton to allow clients to use tokenized money market fund shares as collateral for trades. The partnership, which was announced on Monday, September 28, 2026, allows eligible Bybit clients to borrow USDT or USDC against Benji-issued fund shares that remain in custody and continue to earn yield.
The collaboration between Bybit and Franklin Templeton is the latest development in the growing trend of using tokenized assets as collateral. In April 2025, OKX and Standard Chartered launched a pilot program to accept Franklin Templeton's tokenized money market funds as off-exchange collateral, with the bank acting as custodian.
Under the new partnership, clients can pledge fund shares through ByCustody, a custody platform, and receive USDT or USDC trading credit lines on Bybit in return. The shares never move to the exchange, and Bybit mirrors their value inside its trading system, allowing clients to trade against them while the fund continues to earn yield.
Franklin Templeton's head of digital assets and innovation, Sandy Kaul, said that the partnership offers a trusted venue for regulated, yield-bearing assets to be used in digital markets. Bybit's global head of RWA and TradFi, Yoyee Wang, added that the deal helps clients deploy capital more effectively while maintaining exposure to trusted investment products.