Franklin Templeton Expands Tokenized Collateral Program with Bybit

Franklin Templeton has added tokenized fund shares to Bybit's off-exchange collateral program, allowing eligible clients to pledge their holdings for USDT or USDC trading credit.

The arrangement lets clients retain the yield of the Franklin OnChain U.S. Government Money Fund (FOBXX) while using their holdings as collateral. The shares themselves stay with the custodian, ByCustody, and are recorded in Bybit's trading system.

Franklin Templeton issues the tokenized shares through its blockchain-based recordkeeping and transfer agency platform, Benji. One BENJI token represents one share of FOBXX, which invests mainly in U.S. government securities, cash, and repurchase agreements backed by those assets.

The fund has a yield of 3.7% over the last seven days, reflecting recent income. Borrowed USDT or USDC provides trading liquidity without requiring clients to sell their fund shares.