Franklin Templeton Expanded Tokenized Collateral to Bybit
The partnership allows investors to use fund shares as collateral for stablecoin loans on the Bybit platform.
Updated on Sept. 28, 2026 in Investing
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Franklin Templeton has launched its off-exchange collateral service on Bybit, enabling users to leverage tokenized money market fund shares for crypto trading. This integration allows investors to borrow stablecoins like USDT and USDC while continuing to earn yield on their underlying assets.
Why it matters
The partnership enables yield generation while simultaneously unlocking liquidity for traders. By allowing investors to put their assets to work as collateral, the move expands the utility of tokenized financial products in the digital asset space.
The tokenized fund shares involved in the program currently represent $686 million in net assets. These shares are issued and managed through the Benji Technology Platform.
The players
Franklin Templeton
This is a global investment management organization that provides asset management services and financial planning.
Bybit
This is a global cryptocurrency exchange that offers a platform for traders to access digital asset markets.
Binance
This is a large global cryptocurrency exchange that previously partnered with Franklin Templeton for tokenized collateral services.
OKX
This is a Seychelles-based cryptocurrency exchange that provides digital asset trading services and previously partnered with Franklin Templeton.
The details
ByCustody holds the underlying assets off-exchange while mirroring their value within the Bybit trading environment to facilitate loan security. This service mirrors previous partnerships Franklin Templeton established with crypto exchanges Binance and OKX.
Timeline
The partnership announcement was released on September 28, 2026.
Market Dynamics
The expansion follows a trend of utilizing the Benji Technology Platform to integrate traditional money market funds with digital asset exchange liquidity. This move reflects a broader industry shift toward embedding regulated financial products into the crypto-trading ecosystem.
Retail and institutional investors can now use their fund shares as collateral for stablecoin loans, providing them with immediate liquidity without needing to sell their positions. This capability potentially optimizes portfolio management for those active on the Bybit platform.
The takeaway
This development highlights the ongoing convergence between traditional financial institutions and digital asset exchanges. Investors should monitor how these cross-platform collateral services impact their overall margin risk and portfolio leverage.
Further reading
Learn more about current market trends in Investing.
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Do you believe using tokenized fund shares as collateral for crypto trading is a good idea?
