Bybit and Franklin Templeton Team Up for Tokenized Collateral Trading

Franklin Templeton has partnered with Bybit to allow institutional investors to use tokenized shares of its money market funds as trading collateral.

The partnership enables eligible clients to pledge fund shares issued through Franklin Templeton's Benji platform while the assets remain in off-exchange custody, granting access to credit lines denominated in USDT or USDC stablecoins for trading on Bybit without selling the fund shares.

This arrangement allows institutions to keep earning yield on their money market fund holdings while using those assets to finance crypto trading.