Binance and Franklin Templeton have unveiled a first-of-its-kind institutional off-exchange collateral program, bridging traditional finance and digital asset trading in a novel way. Approved clients can now use tokenized money market fund (MMF) shares, issued via Franklin Templeton’s Benji Platform, as collateral for trading on Binance — without moving the underlying assets onto the exchange.
Custody Without Compromise
Unlike traditional approaches where assets must be deposited onto an exchange, this program leverages third-party custody through Binance’s partner, Ceffu. The value of the tokenized MMF shares is represented inside Binance’s system, allowing institutional clients to remain active in trading while maintaining assets securely off-platform.
Ian Loh, CEO of Ceffu, highlighted the significance:
"Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency. This program delivers exactly that."
Strategic Partnership in Action
This initiative marks the first major development from the strategic partnership announced between Binance and Franklin Templeton in September 2025. It demonstrates the growing integration between regulated traditional financial products and the evolving digital asset ecosystem.
Roger Bayston, Franklin Templeton’s Head of Digital Assets, explained:
"Our off-exchange collateral program lets clients put their assets to work safely in third-party custody while exploring innovative yield opportunities."
Catherine Chen, Head of VIP & Institutional at Binance, added:
"Enabling the use of traditional financial instruments in on-chain trading opens up entirely new avenues for institutional investors."
Why This Matters for the Market
By enabling money market funds to be used as collateral on Binance, institutions can now trade while holding regulated, yield-generating assets. This approach preserves familiar custody standards while facilitating 24/7 settlement cycles — a crucial advantage in digital markets where liquidity and speed are paramount.
As more institutions explore digital asset trading, programs like this are expected to become essential tools for bridging the gap between regulated finance and the crypto ecosystem. This move could redefine how institutional investors access and utilize stable, compliant assets while remaining active in global trading markets.