Emre Yumlu 
Binance, the world’s largest cryptocurrency exchange, has entered into a strategic collaboration with global asset manager Franklin Templeton. The partnership introduces a new framework that allows institutional clients to use tokenized money market fund (MMF) shares as off-exchange collateral.
The initiative is designed to address long-standing concerns among large-scale investors regarding custody risk, capital inefficiency, and counterparty exposure. Under the new structure, institutions can deploy capital in digital markets without transferring their underlying assets directly onto the exchange.
Details of the Binance and Franklin Templeton Collaboration
The program is built around tokenized money market fund shares issued via Franklin Templeton’s Benji Technology Platform. Eligible institutional participants can pledge these tokenized fund shares as collateral when trading on Binance.
Importantly, the underlying assets remain held off-exchange within regulated custody infrastructure. The custody layer is supported by Ceffu, Binance’s institutional custody partner. While the tokenized fund shares are securely stored outside the exchange environment, their value is mirrored within Binance’s trading system. This mechanism allows institutions to maintain exposure to regulated, yield-bearing money market instruments while simultaneously engaging in crypto trading activities.
Enhancing Capital Efficiency and Risk Management
One of the core advantages of this model is improved capital efficiency. Institutions no longer need to leave significant funds idle on trading platforms. Instead, they can continue earning yield through traditional money market funds while leveraging the same assets as collateral in digital asset markets.
By keeping the underlying assets within regulated custody rather than on the exchange itself, the structure reduces counterparty risk. This is particularly relevant for institutional participants that prioritize regulatory compliance, asset protection, and operational transparency.
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Bridging Traditional Finance and Digital Assets
The collaboration reflects a broader trend toward integrating traditional financial instruments with blockchain-based markets. Tokenized real-world assets are increasingly viewed as a practical solution for aligning conventional capital markets with digital trading infrastructure.
Through this program, Binance and Franklin Templeton are effectively creating a bridge between regulated financial products and crypto market activity. For institutional investors, the result is a more secure, flexible, and capital-efficient way to participate in digital asset trading while maintaining exposure to established financial instruments.
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