Bybit Partners with Franklin Templeton for Institutional Off-Exchange Collateral Program
Bybit, a leading crypto platform, has partnered with Franklin Templeton to launch an off-exchange collateral program for institutional clients. This innovative structure allows eligible institutions to use tokenized money-market fund shares issued through Franklin Templeton's Benji platform as collateral while trading on Bybit.
The collaboration is aimed at reducing counterparty exposure and allowing collateral to continue generating yield associated with the underlying money-market fund. Tokenized funds have evolved from holding Treasury-like assets on-chain to becoming a crucial part of market infrastructure, enabling institutions to finance their trading activities against these tokenized shares.
This move is significant, especially in light of recent exchange failures and security incidents. Bybit gains access to collateral value without requiring the institution to convert its entire position into cash or stablecoins first. The structure keeps assets off the exchange, reducing the concentration of risk.