Institutions Just Got a New Way to Trade Crypto Without Touching an Exchange

Binance, in partnership with Franklin Templeton, has introduced a new off-exchange collateral program allowing institutional investors to trade crypto without depositing assets directly on the exchange. Eligible institutions can use tokenized shares of Franklin Templeton's regulated Money Market Funds (MMFs) as collateral, which remains in third-party custody, with its value mirrored in Binance's trading environment via Ceffu's infrastructure. This addresses major institutional concerns like counterparty risk and exchange failure exposure, while also improving capital efficiency since the collateral assets continue to earn yield. This initiative is a key milestone in the collaboration announced in September 2025 and highlights the growing role of tokenized Real-World Assets (RWAs). However, experts caution that while risk is redistributed, reliance on Binance's ecosystem for execution and valuation remains, potentially reinforcing centralization, alongside new operational and regulatory complexities.

(Source：BeInCrypto)