Franklin Templeton Bolsters Bybit with Tokenized Collateral Program

Franklin Templeton has partnered with Bybit to allow institutional clients and wallet users to pledge tokenized money market fund shares as trading collateral without moving assets onto the exchange.

The arrangement, which was announced on September 28, allows investors to borrow USDT or USDC against shares representing roughly $686 million in net assets while continuing to earn yield on the underlying fund.

The actual assets remain in regulated custody off the exchange through ByCustody, with their value mirrored inside Bybit's trading environment.

Bybit and Franklin Templeton are also planning a retail-focused tokenized wealth product on Mantle, though details such as fees, minimums, and launch timing remain undisclosed.