Bybit Integrates Franklin Templeton's Tokenized Money Market Shares as Collateral

Bybit users can now pledge Franklin Templeton's tokenized money market shares as collateral to borrow USDT or USDC, according to a recent announcement by Altcoin Buzz. The underlying holdings of the fund remain at ByCustody, while Bybit mirrors their value for trading purposes.

The tokenized shares are issued through Benji, Franklin Templeton's blockchain-integrated record-keeping and transfer platform, and represent about $686 million in net assets. They earn an annualized yield of 3.7%, although this figure can change and does not account for the total cost of the Bybit arrangement.

Bybit is not the first exchange to offer Franklin Templeton's tokenized money market funds as off-exchange collateral, with Binance and OKX already offering them to their customers. However, the details of the service are still unclear, including the eligibility rules and risk parameters for users.