Key Highlights
- Institutional traders can now use tokenized money market fund (MMF) shares as collateral, allowing them to earn yield on their assets.
- Utilizing Binance’s institutional custody partner, Ceffu, assets remain securely held off-exchange, significantly reducing counterparty risk.
- The initiative utilizes Franklin Templeton’s proprietary Benji Technology Platform, which integrates regulated traditional financial instruments directly into digital market infrastructures.
In a step to converge traditional finance (TradFi) and the digital asset ecosystem, Franklin Templeton and Binance announced the live launch of their institutional off-exchange collateral program today, February 11, 2026.
This initiative addresses a critical barrier for large-scale investors: the need to balance high-stakes digital asset trading with the security and yield generation of traditional capital. By allowing money market fund (MMF) shares to act as collateral, the partners are effectively turning a “static” traditional asset into a dynamic tool for the crypto markets.
This program is a joint effort between Franklin Templeton, a global investment leader with $1.6 trillion in assets under management (AUM), and Binance, the world’s leading cryptocurrency exchange. The infrastructure is powered by Ceffu, Binance’s institutional crypto-native custody partner, and Franklin Templeton’s Benji Technology Platform.
Turning yield-bearing assets into trading power
Eligible institutional clients can now use tokenized shares of Franklin Templeton money market funds as “off-exchange collateral.”
Traditionally, traders had to hold idle cash or stablecoins on an exchange to provide collateral. Now, they can hold yield-bearing MMF shares that are “mirrored” in their Binance trading account.
This allows them to remain invested in regulated, low-risk instruments while simultaneously deploying that value to back their trading activity, ensuring their capital is never “resting.”
The solution operates across the global digital asset markets accessible via Binance’s institutional and VIP portals. Unlike traditional markets that close on weekends and holidays, the tokenized Benji shares are maintained on public blockchains, ensuring they are available for 24/7 settlement and collateral calls.
This launch reflects the rapid maturation of the tokenization sector, which has evolved from a niche experiment into a multi-billion dollar pillar of modern finance.
Roger Bayston, Head of Digital Assets at Franklin Templeton, said, “Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions.”
The shift toward off-exchange custody
The primary motivation for this partnership is systemic risk management. Institutions are increasingly wary of “exchange risk”—the danger of leaving large asset balances on a centralized platform. By keeping the assets in third-party custody via Ceffu, the risk of exchange failure impacting the underlying capital is minimized.
Simultaneously, the program addresses the regulatory demand for bankruptcy-remote custody, allowing institutions to participate in digital markets with the same level of protection they expect on Wall Street.
As Ian Loh, CEO of Ceffu, noted, “Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency.”
The technical backbone of the program is the “mirrored” trading model. When a client pledges their tokenized Benji shares through Ceffu, the collateral value is recognized within Binance’s trading environment, while the actual shares remain securely vaulted.
If a margin event occurs, the system facilitates the necessary adjustments off-chain or via periodic intervals. As Ian Loh, CEO of Ceffu, observed, this model allows for high capital efficiency without sacrificing the rigorous risk management frameworks that institutional governance requires.
The future of tokenization
As traditional products are adapted for modern market structures, the success of this MMF program likely signals a broader expansion into other Real-World Assets (RWAs). Offering yield-bearing collateral that can settle 24/7 meets a rising institutional demand for stability in an otherwise volatile market.
By merging the reliability of Franklin Templeton’s fund management with Binance’s liquidity, the two giants have created a unified financial system where the distinction between “digital” and “traditional” assets is increasingly obsolete.
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