Franklin Templeton Brings Tokenized Collateral to Bybit Traders
Franklin Templeton has expanded its tokenized money market collateral program to Bybit, a leading cryptocurrency exchange. The move allows eligible clients to access USDT and USDC trading credit lines while keeping their underlying assets off-exchange.
The program uses Franklin Templeton's blockchain-based Benji infrastructure, which issues and records tokenized fund shares. ByCustody holds the assets in off-exchange custody, while their value is mirrored on Bybit for trading purposes.
This arrangement addresses an important capital-efficiency issue for crypto traders and institutions, allowing them to keep productive assets generating returns while using them as collateral for digital-asset positions.
Franklin Templeton has already pursued similar arrangements with other crypto platforms, including a February 2026 off-exchange collateral program with Binance. The Bybit expansion extends this strategy rather than introducing an isolated product.