Franklin Templeton and Binance Launch Tokenized Fund Collateral Program — A Major Institutional Crypto Move

Core Insights - Franklin Templeton has partnered with Binance to launch the Institutional Off-Exchange Collateral Program, marking the first product from their strategic partnership announced in September 2025 [1] - The program aims to combine traditional finance expertise with crypto infrastructure to enhance institutional access to digital markets [1] Program Functionality - Eligible institutional clients, including hedge funds and asset managers, can use tokenized shares of Franklin Templeton's money market funds as collateral for trading on Binance [2] - The tokenized shares are issued through Franklin Templeton's Benji Technology Platform, a blockchain-based system ensuring compliant handling of real-world assets [2] Security and Risk Management - The program features an off-exchange structure where the underlying tokenized assets remain in regulated, third-party custody, secured by Binance's institutional-grade custody partner, Ceffu [3] - This structure mitigates platform-specific risks such as hacks or insolvency by keeping assets in regulated custody while allowing full trading functionality [4] Capital Efficiency and Returns - The collateral consists of yield-bearing money market fund shares, allowing institutions to earn returns on pledged assets while trading [5] - The program maximizes capital efficiency with 24/7 settlement enabled by blockchain technology, offering faster operations compared to traditional finance systems [5] Participation Criteria - Only sophisticated institutional clients meeting Binance's risk management and trading expertise criteria can participate in the program [6] Unique Features - The program allows institutional investors to use tokenized shares of money market funds as collateral without transferring assets to the exchange, maintaining security in regulated custody [7] - It is characterized by off-exchange safety, regulated yield, and direct integration with Binance for institutional clients [7]