Franklin Templeton Brings Tokenized Money-Market Collateral to Bybit

Franklin Templeton and Bybit have launched an off-exchange collateral arrangement that gives eligible institutional clients another use for tokenized money-market fund shares: financing trading activity without first selling or transferring the underlying position onto the exchange.

Under the arrangement, eligible shares issued through Franklin Templeton’s Benji Technology Platform can be pledged through ByCustody. Bybit can then provide trading credit lines denominated in USDT or USDC while the tokenized assets remain held off-exchange.

Why it matters

The development is notable less for the tokenization itself than for what the tokenized asset can now do.

Tokenized fund shares are increasingly being connected to market infrastructure such as collateral, custody and credit. In this structure, an investor can retain exposure to a yield-bearing fund position while its value supports trading liquidity elsewhere. That is a practical example of traditional investment products becoming usable components of digital-market infrastructure.

Reporting on the program puts the relevant fund at roughly $686 million in net assets.

The bigger picture

For RWA markets, the important signal is the convergence of asset management, tokenization, custody and trading infrastructure. If these models expand, the utility of tokenized securities may increasingly be measured not only by assets issued onchain, but by how easily those assets can move through collateral and settlement workflows.

Sources

• Yellow — Franklin Templeton Turns $686M Tokenized Fund Shares Into Bybit Collateral
• CoinDesk — Franklin Templeton brings its tokenized collateral service to Bybit

RWA Wire covers real-world assets, tokenization and the infrastructure transforming global finance.