- Institutions can now trade on Binance using tokenized money market funds held off the exchange.
- The model cuts risk by keeping assets in regulated custody while still unlocking crypto liquidity.
- The partnership shows how traditional finance and crypto are blending through tokenized assets.
Institutions can now deploy tokenized money market fund shares as trading collateral on Binance. Franklin Templeton and Binance launched the program to solve capital inefficiencies in crypto markets. The solution allows institutions to trade on Binance without moving assets onto the exchange.
Instead, clients hold tokenized MMF shares through Franklin’s Benji platform in regulated custody. Binance mirrors the collateral value within its trading system. Ceffu provides the custody and settlement infrastructure. Consequently, institutions can earn yield while accessing crypto liquidity. The initiative reflects a broader push to merge traditional finance with digital assets.
Moreover, the program builds on a 2025 strategic collaboration between both firms. Eligible clients now use Benji-issued tokenized money market fund shares as off-exchange collateral. However, the assets remain secured in third-party custody. Binance integrates the collateral value directly into its trading environment. Hence, institutions avoid the counterparty risk of parking funds on exchanges.
How the Off-Exchange Model Works
Franklin Templeton issues tokenized MMF shares through its Benji Technology Platform. Clients hold these shares in regulated, off-exchange custody. Binance then mirrors the asset value inside its trading accounts. Ceffu supports custody and settlement for institutional participants.
Additionally, this structure tackles a long-standing pain point for large traders. Institutions often hesitate to move treasury assets onto exchanges. They worry about counterparty exposure and regulatory gaps. This program removes that friction. Consequently, traders maintain custody protections while unlocking capital efficiency.
Roger Bayston, Head of Digital Assets at Franklin Templeton, emphasized the institutional focus. “Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions,” he said.
He added, “Our off-exchange collateral program is just that: letting clients easily put their assets to work in third-party custody while safely earning yield in new ways. That’s the future Benji was designed for, and working with partners like Binance allows us to deliver it at scale.”
TradFi and Crypto Move Closer
Binance sees the move as a structural shift. “Partnering with Franklin Templeton to offer tokenized real-world assets as off-exchange collateral is a natural next step in our mission to bring digital assets and traditional finance closer together,” said Catherine Chen, Head of VIP & Institutional at Binance. She added, “Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors and shows just how blockchain technology can make markets more efficient.”
Besides, institutions increasingly demand stable, yield-bearing collateral that supports 24/7 settlement cycles. They also require integration with governance and risk frameworks. Ian Loh, CEO of Ceffu, noted, “Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency.”
