Binance teams up with Franklin Templeton to use tokenized money market funds as off-exchange collateral

Binance, the world's largest crypto exchange, is collaborating with Franklin Templeton to introduce an institutional off-exchange collateral program aimed at enhancing security and capital efficiency in digital markets. Eligible clients can now utilize tokenized money market fund shares, issued via Franklin Templeton’s Benji Technology Platform, as collateral for trading on Binance, leveraging Ceffu’s custody layer. This addresses a major hurdle for institutional traders by permitting the use of traditional, regulated, yield-bearing money market fund assets in digital markets without requiring them to be held on the exchange. The value is reflected in Binance’s environment, while the tokenized assets remain securely held off-exchange in regulated custody, thereby reducing counterparty risk and allowing participants to earn yield while supporting trading activities.

(Source：CoinDesk)