Eligible institutions can pledge Benji-issued fund shares for stablecoin credit lines while keeping the underlying assets in off-exchange custody.
Franklin Templeton has partnered with Bybit on a program that lets institutional investors use tokenized shares of its money market funds as trading collateral, expanding their use beyond a simple buy-and-hold investment.
The companies announced Monday that eligible clients can pledge fund shares issued through Franklin Templeton’s Benji platform while the assets remain in off-exchange custody. In return, clients can access credit lines denominated in the USDT or USDC stablecoins to trade on Bybit without selling the fund shares or transferring them onto the exchange.
The arrangement allows institutions to keep earning yield on their money market fund holdings while using those assets to finance crypto trading.
