Bybit and Franklin Templeton launch tokenized fund collateral for institutions
CIE News ·
Bybit and Franklin Templeton introduced an off-exchange collateral system on September 28, enabling institutional traders to pledge tokenized money market shares for trading credit lines while retaining underlying yields.
Bybit announced a partnership with Franklin Templeton on September 28 to permit institutional clients to pledge tokenized money market fund shares as trading collateral, according to reports by captainaltcoin.com and finance.biggo.com. The initiative allows traders to secure credit lines in Tether (USDT) or USD Coin (USDC) against fund shares that represent approximately $686 million in net assets.
Under the arrangement, the assets are issued via Franklin Templeton's Benji Technology Platform and held off-exchange using ByCustody, finance.biggo.com reported. Collateral valuations are mirrored inside Bybit's execution environment, permitting users to continue generating an annualized yield of roughly 3.7% without transferring the underlying assets directly onto the platform.
Yoyee Wang, Bybit's Global Head of RWA and TradFi, noted that the integration provides capital efficiency while maintaining regulated risk standards, captainaltcoin.com reported. The companies also outlined plans to release tokenized wealth products targeting wallet-based investors on the Mantle network.