Bybit Now Accepts Franklin Templeton Tokenized Funds as Collateral

Bybit expands collateral options for institutions

Bybit, a cryptocurrency exchange, has announced a new partnership with Franklin Templeton. This deal allows eligible institutional investors to use tokenized shares of Franklin Templeton's money market funds as collateral.

Through this program, clients can borrow stablecoins like USDT or USDC to trade on Bybit. They can do this without selling their fund shares or moving the underlying assets onto the exchange. The assets remain in off-exchange custody.

How the new program works

• Institutions pledge fund shares issued through Franklin Templeton's Benji platform.
• Clients receive credit lines in stablecoins to finance crypto trading.
• Fund holders continue to earn yield on their money market investments while using them as collateral.
• The arrangement keeps the underlying assets secure in off-exchange custody.

Future plans for wallet users

Both companies stated they are planning a new tokenized investment product. This product will be available for users on Bybit and the Mantle network. However, specific details about this future offering have not been released yet.

Context on the growing market

This move comes as demand for tokenized money market funds increases. According to the Bank for International Settlements, the market for these funds was valued at over $9 billion as of September 2025.

Data from RWA.xyz shows Franklin Templeton's Benji platform had about $669 million in assets under management recently. This is down from $1.98 billion reported in April. Other major players exist in this space; BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) holds $2.2 billion and is accepted as collateral on Crypto.com, Deribit, and Binance.

Sources

• Cointelegraph