Binance and Franklin Templeton team to support tokenized MMFs as off-exchange collateral

Binance, the world’s largest cryptocurrency exchange, announced its partnership with Franklin Templeton, a leading global investment management firm.

This collaboration has led to the establishment of a new institutional off-exchange collateral initiative, which seeks to improve security and streamline efficiency in digital markets.

The announcement comes as Bitcoin hovers around $67,000. One analyst suggested that the cryptocurrency is hitting a low point after a recent devaluation. Currently, Bitcoin is trading at $66,888.58, down 3.31% over the past 24 hours, according to data from CoinMarketCap.

Ethereum has also shown a similar trend, trading at $1,947.95 after a 3.65% decline over the past 24 hours. Analysts have attributed this trend to the wider market declines, with Bitcoin setting the pace.

Analysts view Binance and Franklin Templeton’s partnership as a game-changer 

Regarding the new service launched under the partnership between Binance and Franklin Templeton, sources noted that it is a game-changer for the ecosystem, as it allows qualified clients to effectively use shares from Franklin Templeton’s Benji Technology Platform on Binance as off-exchange collateral.

These sources also disclosed that these transactions will take place using Ceffu, the exclusive institutional custody partner of the Binance exchange. Moreover, reports confirmed that this initiative solves a long-standing issue for institutional traders by allowing them to use traditional, regulated money market fund assets that generate yield without requiring exchange custody, citing a press release. 

Meanwhile, it is worth noting that Benji’s issued share value is visible on Binance’s trading platform. At the same time, tokenized assets are held in secure, regulated, off-exchange custody.

In a statement, both companies assured that this setup mitigates counterparty risk, enabling institutional investors to generate returns and streamline trading operations free from custodial, liquidity, or regulatory constraints.

Following this assertion, Catherine Chen, Head of VIP & Institutional at Binance, weighed in on the matter. She noted that, “Working with Franklin Templeton to provide tokenized real-world assets for off-exchange collateral settlement is a natural progression in our goal to connect digital assets with traditional finance.”

Franklin Templeton solidifies its position as a leader in the ecosystem 

While institutional investors express excitement about the news that institutions can now use Benji-issued tokenized money market funds as off-exchange collateral, it is worth noting that, towards the end of last year, the Canton Network publicly announced that the Benji Technology platform was now operational on its network.

This development strengthened the asset manager’s footprint in regulated digital markets. It also facilitated enhanced access to tokenized investment products for institutional investors.

The move linked Franklin Templeton’s blockchain setup to Canton’s Global Collateral Network, a system that bridges traditional finance with on-chain markets.

In an email announcement, the company alleged that this integration provides institutions and market makers with a new, compliant, and private source of liquidity and collateral.

“Our main goal is to connect with institutions based on their current situation and, just as importantly, their future direction,” said Roger Bayston, who leads digital assets at Franklin Templeton. He added, “Working with the Canton Network allows clients to enjoy both interoperability and privacy while still ensuring transparency and security.” 

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