Binance & Franklin Launch Tokenized Fund Collateral

Key Insights:

• Tokenized money market funds can now be used as trading collateral on Binance by institutions.
• Assets stay in third-party custody, reducing risk while allowing full capital access on Binance.
• The move connects traditional finance with crypto, enabling safer, yield-backed digital asset trading.

Binance and Franklin Templeton have launched an institutional off-exchange collateral program. The program lets approved clients use tokenized money market fund (MMF) shares, issued through Franklin Templeton’s Benji Platform, as collateral when trading on Binance.

Assets stay in third-party custody rather than being moved onto the exchange. Their value is shown inside Binance’s system using custody technology from Ceffu, which serves institutional clients.

First Result of 2025 Collaboration

This is the first major development since the two companies confirmed a strategic partnership in September 2025. It reflects a growing connection between traditional financial products and digital trading platforms.

Roger Bayston, Franklin Templeton’s Head of Digital Assets, explained:

Catherine Chen, Head of VIP & Institutional at Binance, added:

Custody Managed by Ceffu

The program works through Ceffu, Binance’s custody partner. Instead of transferring funds to the exchange, the assets stay with a trusted custodian. Only their value appears on the platform.

Ceffu’s CEO, Ian Loh, said:

This structure helps investors manage risk while staying active in the market.

Tokenized Funds Enter Crypto Markets

The program allows money market funds to be used in digital environments. Institutions can trade while holding regulated, yield-producing assets outside the exchange.

It also supports around-the-clock settlement cycles. As more institutions enter digital markets, access to stable assets that meet familiar custody rules becomes more important.

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