Franklin Templeton Expands Tokenized Collateral Service to Bybit

Franklin Templeton's tokenized collateral service has expanded to Bybit, one of the world's largest derivatives exchanges. This move follows a similar arrangement with Binance that went live on February 11, 2026. Two of the world's largest crypto exchanges now accept Franklin Templeton's BENJI tokens as off-exchange collateral.

The Benji model allows institutional traders to park yield-bearing assets with a regulated custodian while still using them as trading collateral. This is done by issuing BENJI tokens on a strict one-to-one ratio with shares in its Franklin OnChain U.S. Government Money Fund, known as FOBXX.

Benji currently runs on multiple blockchains, including Stellar and Ethereum, giving institutions flexibility in how they interact with the platform. The Bybit expansion arrives as Franklin Templeton's tokenized offerings cross $2 billion in assets under management.