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.
BingX offers exclusive rewards and top-tier security for new and high-volume crypto traders.
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:
“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.”
Catherine Chen, Head of VIP & Institutional at Binance, added:
“Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors.”
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:
“Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency.”
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.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
