Franklin Templeton, Binance roll out program letting institutions use tokenized money funds as trading collateral

Franklin Templeton and Binance have introduced a new program designed to mitigate counterparty risk for institutional crypto traders by allowing them to use tokenized shares of money market funds as collateral for trading on Binance. Instead of depositing assets onto the exchange, clients pledge these tokenized fund shares, which remain held in regulated custody via Ceffu, Binance’s institutional partner. Binance then mirrors the collateral value within its trading environment. This structure enables institutions to trade actively while keeping underlying assets secure off-exchange, ensuring the pledged assets continue to earn yield, thereby improving capital efficiency. This initiative aligns with a broader industry trend of adapting traditional financial products for tokenized markets.

(Source：The Block)