Franklin Templeton and Bybit expand tokenized fund use

Franklin Templeton and Bybit partnered to let institutional investors use tokenized shares of Franklin Templeton money market funds as trading collateral. The companies announced the program Monday. Eligible clients can pledge shares issued through Franklin Templeton's Benji platform. The assets remain in off-exchange custody. Clients can access credit lines denominated in USDT or USDC to trade on Bybit. They can use the credit lines without selling the fund shares or transferring them onto the exchange. The arrangement lets institutions continue earning yield on their money market fund holdings while using those assets to finance crypto trading. Franklin Templeton and Bybit are planning a tokenized investment product for wallet users on Bybit and the Mantle network. They have not disclosed details. Demand for tokenized money market funds has grown significantly. The Bank for International Settlements valued the market at more than $9 billion as of September 2025. Franklin Templeton's Benji platform had $1.98 billion in assets under management as of April. RWA.xyz data shows that figure has since declined to about $669 million. BlackRock's USD Institutional Digital Liquidity Fund, or BUIDL, is the largest tokenized money market fund at $2.2 billion. Crypto.com and Deribit accept BUIDL as collateral. Binance allows institutional clients to use BUIDL as off-exchange collateral.