Binance, the world’s largest cryptocurrency exchange and a blockchain ecosystem, is set to launch an institutional collateral program in collaboration with Franklin Templeton, a major traditional asset manager that specializes in tokenizing traditional finance (TradFi) assets. The primary purpose of this launch is to connect traditional finance (TradFi) with crypto markets, thereby enhancing capital efficiency.
This institutional collateral program enables a tokenized money market fund (MMF) for the usage of eligible clients’ shares issued via Franklin Templeton’s Benji Technology Platform. Moreover, this is the practical implementation of Binance’s and Franklin Templeton’s collaboration last year.
This program is basically trying to boost traders’ status from a traditional, regulated, yield-bearing money market fund in digital markets without holding those assets on another exchange. Binance has released this news through its official social media X account.
Binance Expands Institutional Infrastructure with Off-Exchange Collateral
The value of Benji-issued fund shares is indicated within Binance’s trading environment, while the tokenized assets stay protected held off-exchange in third-party custody. This minimizes corresponding risk, letting institutional contributions earn yield and aid their trading activity without edging on custody, liquidity, or regulatory protections.
Roger Bayston, Head of Digital Assets at Franklin Templeton, said, “Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions. Our off-exchange collateral program is just that: letting clients easily put their assets to work in third-party custody while safely earning yield in new ways. That’s the future Benji was designed for, and working with partners like Binance allows us to deliver it at scale.”
In response to Roger Bayston’s response, Catherine Chen, Head of VIP and Institutional at Binance, said, “Partnering with Franklin Templeton to offer tokenized real-world assets as off-exchange collateral is a natural next step in our mission to bring digital assets and traditional finance closer together. Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors and shows just how blockchain technology can make markets more efficient.”
Binance and Franklin Templeton Align with Institutional 24/7 Market Trend
The program of Binance and Franklin Templeton joins with wider institutional trends, with the availability of 24/7 settlement cycles and integration into existing governance and risk frameworks. On this CEO of Ceffu, Lan Loh, observed, “Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency.”
These tokenized money market funds are the practical implementation of how traditional products can be adapted for a modern market structure and deploy capital more efficiently as digital finance becomes a part of the financial system.
