Franklin Templeton Expands Tokenized Collateral Service to Bybit Trading Platform

Franklin Templeton has expanded its tokenized collateral service to Bybit, allowing users to pledge shares in the asset manager's tokenized money market funds as trading collateral.

The shares represent approximately $686 million in net assets and can be used to borrow stablecoins USDT or USDC while continuing to earn yield on the underlying holdings.

The arrangement is made possible through Franklin Templeton's partnership with ByCustody, a regulated custody platform that holds the underlying assets off-exchange, mirroring their value inside Bybit's trading environment.