Bybit accepts Franklin Templeton tokenized funds as trading collateral

tokenized funds as collateral — Cryptocurrency exchange Bybit has partnered with asset manager Franklin Templeton to allow institutional clients to use tokenized money market fund shares as collateral for trading.

Under the new program, eligible institutions can pledge fund shares issued via Franklin Templeton’s Benji platform while the assets remain in off-exchange custody. In return, they can access credit lines denominated in USDT or USDC stablecoins to trade on Bybit without selling their fund holdings.

The arrangement enables investors to continue earning yield on their money market fund assets while using them to finance cryptocurrency trading activities. The two firms are also planning a tokenized investment product for users of Bybit and the Mantle network, though details have not yet been disclosed.

The move expands the utility of tokenized funds beyond simple investment. According to RWA.xyz data, Franklin Templeton’s Benji platform had about $669 million in assets under management as of September 2026, down from $1.98 billion in April. The broader tokenized money market fund market was valued at over $9 billion as of September 2025 by the Bank for International Settlements.