Franklin Templeton Offers Tokenized MMF Shares as Bybit Trading Collateral

Franklin Templeton has launched an off-exchange collateral program for Bybit traders that allows them to use tokenized shares of its money market fund as trading collateral. The fund, which has approximately $686 million in net assets, offers investors the ability to borrow Tether's (USDT) or Circle's U.S. dollar stablecoin USDC while continuing to earn yield on their underlying assets.

The program utilizes Franklin Templeton's Benji Technology Platform, a blockchain-based record-keeping and transfer infrastructure. The shares are issued through this platform, allowing investors to utilize them as collateral for trading on Bybit, in addition to Binance and OKX.

The underlying assets are held off-exchange at ByCustody, a regulated custody platform. On Bybit, the value of these assets is recognized as trading collateral. This program enables traders to access liquidity while maintaining their exposure to the fund's yield-generating assets.