Franklin Templeton and Binance have launched a joint program allowing institutions to use tokenized money market fund (MMF) shares as collateral when trading on Binance. These shares, issued through Franklin Templeton’s Benji Technology Platform, remain in regulated third-party custody while their value is mirrored on Binance via Ceffu’s infrastructure. The goal is to reduce counterparty risk and improve capital efficiency by removing the need for institutional clients to transfer assets directly onto exchanges. The tokenized assets remain in custody while enabling trading access, allowing clients to preserve yield and regulatory protections. The program marks an expansion of the collaboration between Franklin Templeton and Binance, which was initially announced in September 2025. The effort reflects the increasing demand from institutions to integrate traditional finance tools with digital market infrastructure. Franklin Templeton, Binance Streamline Access for Institutional Participants The structure of the program solves a longstanding challenge for institutions: how to use regulated assets like MMFs in crypto markets without compromising custody or risk management. By tokenizing fund shares, clients can post them as collateral without removing them from custodial control. Roger Bayston, Head of Digital Assets at Franklin Templeton, explained the benefit for clients. “Our off-exchange collateral program is just that: letting clients easily put their assets to work in third-party custody while safely earning yield in new ways,” he said. Binance will support the mirrored value of these assets inside its trading environment, enabling spot and derivatives activity while reducing the need for direct on-exchange exposure. The integration helps connect traditional financial products to blockchain infrastructure while keeping regulatory safeguards in place. Ceffu Custody Powers the Infrastructure Layer The program uses Ceffu, Binance’s institutional-grade custody partner, to hold the underlying tokenized fund shares. These assets stay off-exchange while their values are used for collateral and settlement operations inside Binance’s system. Catherine Chen, Head of VIP and Institutional at Binance, said, “Partnering with Franklin Templeton to offer tokenized real-world assets as off-exchange collateral is a natural next step in our mission to bring digital assets and traditional finance closer together.” Ceffu CEO Ian Loh noted that institutions are increasingly seeking models that balance risk and efficiency. “Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency,” he said. The launch reflects a shift toward real-world asset tokenization, where regulated investment vehicles such as MMFs can be used across digital platforms while maintaining oversight and audit trails. TradFi and Digital Finance Continue to Align The announcement comes as Franklin Templeton continues to expand its tokenized finance initiatives. The firm, as reported by the Coinpaper, upgraded two institutional money market funds to better align with blockchain-based infrastructure and support new reserve rules around stablecoins. The use of MMF shares as collateral aligns with broader institutional trends. Trading environments are moving toward 24/7 access, and institutions are looking for stable, yield-bearing instruments that can support these cycles. Binance, meanwhile, continues to grow its institutional services, with new infrastructure investments and risk management tools. The Secure Asset Fund for Users (SAFU) was recently expanded by another $300 million worth of BTC, bringing its total reserve above $720 million. Franklin Templeton and Binance have stated that their partnership will continue to explore ways to bring traditional investment products into the blockchain ecosystem in a regulated and secure manner. The launch of the tokenized collateral program may encourage more institutions to adopt similar strategies for capital deployment in crypto markets.
