Franklin Templeton and Binance launch off-exchange collateral program

Franklin Templeton and Binance say they’ve gone live with a new institutional off-exchange collateral program that lets eligible clients post tokenized money market fund shares—issued via Franklin Templeton’s Benji Technology Platform—as collateral for trading on Binance, without moving those assets onto the exchange.

The pitch is straightforward: keep yield-bearing, regulated collateral in off-exchange custody, mirror its value inside Binance’s trading environment, and reduce the classic institutional headache of parking assets on an exchange just to trade. Custody and settlement infrastructure for the program is supported by Ceffu, Binance’s institutional custody partner, with custody services for the Benji-issued shares provided by Ceffu Custody FZE, which the release says is licensed and supervised in Dubai.

How it works

Institutions typically have to choose between convenience and risk: move collateral onto an exchange for fast trading, or keep assets in regulated custody and accept more friction. This program tries to split the difference.

Franklin Templeton says the tokenized money market fund shares stay held off-exchange in regulated custody, while their value is mirrored within Binance so the client can trade without “parking” the underlying collateral on the venue. The companies say this reduces counterparty risk and allows institutions to keep earning yield while supporting trading activity.

Roger Bayston, Franklin Templeton’s Head of Digital Assets, framed the program as letting clients “put their assets to work in regulated custody while safely earning yield.” Binance’s Catherine Chen (Head of VIP & Institutional) said the initiative is part of its push to bring traditional finance instruments into digital markets to improve efficiency.

Why it matters for crypto

• This is tokenization aimed at real institutional plumbing. Tokenized money market fund shares are being positioned as usable collateral for 24/7 digital markets—without forcing institutions to hold the underlying asset on an exchange.
• Counterparty risk is the core pain point being attacked. “Off-exchange” structures are essentially a risk-management product: trade on the venue while keeping collateral in a custody setup designed for institutions.
• Yield-bearing collateral is becoming the battleground. The release explicitly sells the idea of earning yield on regulated money market fund assets while using them to support crypto trading activity.
• Ceffu’s role is central to the model. The custody/settlement layer is part of what makes “mirrored value” workable—institutions will look closely at how controls and segregation are implemented.

What to watch next

• Which Benji-issued funds are eligible—and who qualifies. The release says the program is live for “eligible clients,” but doesn’t list eligibility thresholds or specific fund details.
• Adoption signals from institutions. The real test is whether large trading firms and asset managers actually move meaningful collateral into this structure and use it routinely.
• Expansion to additional tokenized RWAs. The announcement frames this as part of a broader push to offer more tokenized real-world assets on Binance—watch for what comes next beyond money market funds.
• Risk disclosures and operational mechanics. Franklin Templeton includes risk language around issuance, redemption, transfer, custody, and recordkeeping of blockchain-recorded shares; institutions will want the fine print on how those risks are handled.

Source: Franklin Templeton press release