Bybit has announced a new partnership with Franklin Templeton, enabling institutional investors to use tokenized shares of money market funds as trading collateral. This innovative program allows eligible clients to pledge Benji-issued fund shares while keeping the underlying assets in off-exchange custody.
Through this arrangement, clients can access credit lines in USDT or USDC stablecoins, facilitating crypto trading without the need to sell or transfer their fund shares onto the exchange. This model not only enhances trading capabilities but also allows institutions to continue earning yields on their investments.
Additionally, Franklin Templeton and Bybit are working on a tokenized investment product aimed at wallet users on the Bybit platform and the Mantle network, although specific details have yet to be revealed.
The demand for tokenized money market funds is on the rise, with the Bank for International Settlements estimating the market value at over $9 billion as of September 2025. Franklin Templeton’s Benji platform, which had $1.98 billion in assets earlier this year, has seen a decline to approximately $669 million.
As the landscape of crypto trading evolves, Bybit's integration of Franklin Templeton's tokenized funds marks a significant step towards bridging traditional finance and digital assets.