Franklin Templeton and Binance are creating new types of security for institutions
- Franklin Templeton and Binance deepen their collaboration with a non-exchange collateral initiative aimed specifically at institutional clients.
- The focus is on the use of tokenized money market fund shares, which are issued via Franklin Templeton’s Benji Technology Platform.
Such shares can now be used as collateral for trading on Binance without the assets themselves having to be on the exchange. The tokens remain entirely in third-party custody while their value is projected into the Binance trading environment via Ceffu’s custody infrastructure.
This creates a model that makes capital more efficient to use and at the same time reduces counterparty risk.
Bridge between TradFi and DeFi
The initiative follows on from the one announced in 2025 Partnership between Franklin Templeton and Binance and shows how quickly traditional financial instruments can be integrated into digital market structures.
Institutional investors have the opportunity to simultaneously use regulated, return-producing money market funds as collateral and continue to earn their income.
Roger Bayston, Head of Digital Assets at Franklin Templeton, emphasizes that Benji was developed for exactly this use case:
Keep assets securely in third-party custody and still use them productively. Binance sees this as the logical step to integrate real-world assets more closely into digital trading and to modernize institutional processes.
Gaining efficiency through tokenization
Tokenized money market funds combine stability in a regulated system with the flexibility of digital markets. Institutional participants benefit from an infrastructure that enables 24/7 transactions while fitting into existing governance and risk environments.
Ceffu CEO Ian Loh emphasizes that institutions increasingly need trading models that simultaneously optimize risk management and capital utilization. The ability to represent traditional fund shares onchain without physically moving them creates exactly this opportunity.
Importance for the market infrastructure
With the new collateral program, Franklin Templeton and Binance are sending a clear signal for the future of institutional market structures. Tokenized real world assets are becoming a central tool that combines liquidity, security and efficiency.
For Binance, the offer is a further step towards meeting the increasing demand for stable, yield-bearing securities.
The cooperation makes it clear how traditional financial products can be integrated into the digital financial economy and shows an example of the role tokenization can play in institutional trading in the future.
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