Binance
February 9, 2026
Tokenized money market funds can now be used as off-exchange collateral on Binance, following a new institutional program launched with Franklin Templeton on February 11, 2026. The initiative allows eligible clients to use tokenized money market funds issued through Franklin Templeton’s Benji Technology Platform as collateral for institutional crypto trading, while keeping assets securely held off-exchange in third-party custody.
Binance and Franklin Templeton (@FTDA_US @FTI_US) are launching an institutional collateral program, enabling tokenized money market fund (MMF) shares issued via Franklin Templeton’s Benji Technology Platform to be used as collateral on Binance.
— Binance (@binance) February 11, 2026
This is the first initiative… pic.twitter.com/QS1ZKbBOCC
The program addresses capital efficiency concerns by enabling traditional regulated, yield-bearing assets to support trading activity without transferring custody to an exchange. Collateral value is mirrored within Binance’s trading environment using Ceffu’s custody infrastructure. At the same time, the tokenized real-world assets remain in independent custody.
This move aligns with the broader surge in institutional demand for tokenized RWAs, a trend highlighted in recent market analysis.
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How Tokenized Money Market Funds Transform Institutional Crypto Trading
Off-Exchange Collateral Reduces Counterparty Risk
The off-exchange collateral structure changes how institutions deploy capital in digital markets. By allowing tokenized money market funds to serve as collateral, institutional traders earn yield on their assets while supporting trading operations—without the counterparty risk from parking assets directly on an exchange.
Roger Bayston, Head of Digital Assets at Franklin Templeton, stated:
“Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions. Our off-exchange collateral program is just that: letting clients easily put their assets to work in third-party custody while safely earning yield in new ways. That’s the future Benji was designed for, and working with partners like Binance allows us to deliver it at scale.”
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Meeting Institutional Demand for Tokenized Real-World Assets
Catherine Chen, Head of VIP & Institutional at Binance, had this to say:
“Partnering with Franklin Templeton to offer tokenized real-world assets as off-exchange collateral is a natural next step in our mission to bring digital assets and traditional finance closer together. Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors and shows just how blockchain technology can make markets more efficient.”
The Franklin Templeton–Binance collaboration builds on their September 2025 partnership and shows how tokenized money market funds support modern institutional crypto trading infrastructure. The program is currently available to eligible institutional clients through Franklin Templeton Binance systems.
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