Institutions Can Now Use Tokenized Fund Shares as Trading Collateral on Bybit

Franklin Templeton and Bybit have formed a strategic collaboration to allow eligible institutional clients to use tokenized money-market-fund shares as off-exchange collateral for trading on Bybit.

The structure allows clients to pledge Benji-issued fund shares through ByCustody in return for USDT or USDC trading credit lines, rather than moving the underlying fund assets onto Bybit.

The arrangement places a tokenized investment product into the collateral workflow for institutional trading and preserves the distinction between where the assets are held and where trading takes place.