Bybit Partners with Franklin Templeton to Bring Tokenized Investing to Institutional Clients

Bybit, a leading cryptocurrency exchange, has partnered with Franklin Templeton to expand access to tokenized investing. The partnership allows institutional clients to use tokenized money market fund shares as collateral when trading on Bybit's platform.

The program, which launches with an off-exchange collateral program, gives eligible investors the ability to pledge fund shares issued through Franklin Templeton's Benji Technology Platform via Bybit's institutional-grade custody platform, ByCustody. This allows clients to access Tether (USDT) or USD Coin USDC trading credit lines without having to hold the underlying assets on-exchange.

According to Yoyee Wang, Global Head of RWA and TradFi at Bybit, 'institutional adoption of digital assets accelerates' and investors increasingly expect flexibility, capital efficiency, and risk management standards similar to traditional markets. The partnership aims to help clients deploy capital more effectively while maintaining exposure to trusted, regulated investment products.

The collaboration also extends to retail investors with the launch of a tokenized wealth product on the Bybit exchange and Mantle chain. This will provide wallet-based investors with access to Franklin Templeton's investment strategies.