Franklin Templeton Tokenized Funds Now Collateral on Bybit
Franklin Templeton has added its tokenized fund shares as collateral to Bybit's trading platform, allowing eligible clients to use their holdings for USDT or USDC credit. The move comes after similar collaborations with Binance and OKX.
The arrangement lets clients retain the yield of the Franklin OnChain U.S. Government Money Fund (FOBXX), which invests mainly in U.S. government securities, cash, and repurchase agreements backed by those assets. The fund's shares are issued through Benji, Franklin Templeton's blockchain-based recordkeeping and transfer agency platform.
Bybit records the value of the pledged shares off-exchange while clients continue earning yield on their holdings. This expansion brings traditional funds into crypto credit workflows without transferring shares to exchanges. Franklin Templeton has reported $1.83 trillion in companywide assets under management as of August 31.