Crypto-friendly institution Franklin Templeton brings its tokenized collateral service to Bybit

Franklin Templeton has expanded its off-exchange collateral program to the Bybit exchange, enabling users to utilize shares of its tokenized money market fund as collateral for crypto trading. This integration allows investors to borrow stablecoins like USDT and USDC while continuing to earn yield on their underlying assets, which currently represent approximately $686 million in net assets. The mechanism relies on ByCustody to hold the assets off-exchange, while the value is mirrored within the Bybit trading environment to unlock liquidity without requiring asset movement. This development marks another milestone in Franklin Templeton's strategy to integrate its Benji-issued tokenized funds across major crypto exchanges, following similar partnerships with Binance and OKX. By allowing investors to optimize collateral usage while maintaining yield exposure, the firm aims to bridge traditional asset management with the crypto ecosystem. This trend reflects a broader industry shift toward using regulated, tokenized money market funds as high-quality collateral for derivatives and spot trading. The initiative highlights the growing utility of blockchain-integrated record-keeping platforms in professionalizing crypto market infrastructure.