Franklin Templeton and Binance have launched an institutional off-exchange collateral program that uses tokenized shares of money market funds. Eligible clients can now pledge these fund tokens as collateral when trading on Binance. The assets remain in regulated custody rather than being held on the exchange.
Franklin Templeton issues the tokenized shares through its Benji Technology Platform, which runs on public blockchains. Ceffu, Binance’s institutional custody partner, provides the custody and settlement infrastructure for the program. Binance mirrors the value of Benji Fund shares within its trading systems, enabling collateral to support spot and derivatives positions.
Why Institutions Care About Off-Exchange Collateral
Large traders have long wanted ways to use traditional, yield-bearing assets as collateral in crypto markets. In many cases, they had to move cash or coins directly onto exchanges, which raised counterparty and operational risks. This new setup lets them keep assets in a regulated fund while still backing trades on Binance.
The structure also supports faster collateral movements and more flexible margin management. Tokenized fund shares can move and be revalued on the chain around the clock, unlike many bank transfers. That fits the growing demand for collateral that works with 24/7 digital markets and modern risk systems.
Roles Of Franklin Templeton, Binance, And Ceffu
Franklin Templeton brings its experience in tokenizing regulated securities, including money market funds. The firm has promoted the idea of a “universal liquidity layer” in which tokenized instruments can be plugged into multiple venues. In this program, Benji platform creates the fund tokens that institutions pledge as collateral.
Binance contributes its trading infrastructure and global institutional client base. The exchange already runs off exchange settlement services, which this program now extends to tokenized fund collateral. Ceffu sits between them, holding the assets and managing settlement so collateral stays off the exchange but remains usable.
The partners plan to expand their collaboration beyond this first product as institutional demand grows. Future steps could include adding additional tokenized funds or securities as eligible collateral. If adoption builds, similar off-exchange models may become standard for how institutions access digital asset markets.
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