Binance and Franklin Templeton have introduced an off-exchange collateral program for institutional investors, allowing them to trade crypto without directly depositing assets on an exchange. The initiative utilizes tokenized money market fund (MMF) shares issued through Franklin Templeton's Benji Technology Platform as collateral, which remains in third-party custody. This approach aims to mitigate counterparty risk and improve capital efficiency by enabling institutions to earn yields on MMFs while trading on Binance.
The program, a result of a strategic partnership announced in September 2025, reflects a broader trend towards real-world asset tokenization in crypto markets. It addresses institutional demands for risk management and capital efficiency, particularly in a volatile market environment. While the initiative enhances infrastructure for institutional engagement, it also raises concerns about centralization and regulatory compliance, as it relies heavily on Binance's ecosystem for trading execution and liquidity.
Binance and Franklin Templeton Launch Off-Exchange Crypto Collateral Program
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