Franklin Templeton expands tokenized collateral service to Bybit

Franklin Templeton expanded its off-exchange collateral program to Bybit. The program lets Bybit investors and wallet holders pledge shares in Franklin Templeton's tokenized money market funds as collateral. The shares represent about $686 million in net assets. Users can borrow USDT or USDC against the shares. Users continue earning yield on the underlying assets. Users do not need to move the assets to Bybit. The press release said regulated custody platform ByCustody will hold the assets off-exchange. The release said Bybit will mirror the assets' value in its trading environment. Franklin Templeton also offers its tokenized money market funds to customers of Binance and OKX. Sandy Kaul, Franklin Templeton's head of digital assets and innovation, said the work continues the buildout of collateral mirroring in crypto and the opportunities it brings.