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      Franklin Templeton Expands Tokenized Collateral Services to Bybit

      Franklin Templeton has broadened its Over-the-Counter Collateral Program by partnering with Bybit, a cryptocurrency exchange. This initiative enables Bybit users to utilize their tokenized money market fund shares as collateral for trading, specifically to borrow stablecoins such as USDT or USDC. The shares involved represent approximately $686 million in net assets, allowing users to maintain their investment returns while accessing liquidity for trading.

      The underlying assets of these shares will not be transferred to Bybit; instead, they will be securely held off-chain by ByCustody, a regulated custody platform. This arrangement allows the value of the assets to be mirrored within the Bybit trading environment, ensuring that users can earn returns while also enhancing their trading capabilities. The shares are issued through Franklin Templeton's proprietary Benji technology platform, which integrates blockchain for record-keeping and transfer agency functions, currently offering an annualized return of 3.7% based on the latest interest rates.

      This move is part of Franklin Templeton's ongoing strategy to engage in over-the-counter collateral partnerships, having previously provided similar services to clients of other exchanges such as Binance and OKX. Sandy Kaul, the Head of Digital Assets and Innovation at Franklin Templeton, emphasized the importance of efficient collateral use across major exchanges for fostering growth in the cryptocurrency ecosystem. The expansion aligns with broader industry trends, as other platforms like Crypto.com and Deribit have also begun allowing qualified users to leverage funds as trading collateral.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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