Binance has introduced a new institutional service designed to link traditional money market funds with crypto trading.
The exchange is working with Franklin Templeton to launch an off-exchange collateral programme that allows eligible clients to use tokenised fund shares to support trading activity.
The initiative brings regulated, yield-bearing assets into Binance’s digital markets while keeping those assets outside the exchange’s direct custody.
It reflects a broader push to connect traditional finance infrastructure with crypto platforms in a way that addresses long-standing concerns around counterparty exposure and capital efficiency.
The programme targets growing institutional demand for regulated digital trading infrastructure.
Off-exchange collateral structure
The programme enables eligible institutional clients to use tokenised shares of Franklin Templeton money market funds as collateral when trading on Binance.
These shares are issued through Franklin Templeton’s Benji Technology Platform.
Rather than transferring assets onto the exchange, clients hold the tokenised fund shares in regulated custody.
Binance reflects the value of those shares within its trading environment, allowing them to function as collateral without being parked on the platform itself.
Custody services are provided through Ceffu, Binance’s partner custody layer.
The structure separates trading activity from asset custody, with the tokenised assets held off-exchange while still supporting transactions on Binance.
Benji platform and tokenised funds
The tokenised assets used in the programme originate from Franklin Templeton’s Benji Technology Platform.
The platform issues digital representations of money market fund shares, which are typically regulated and yield-bearing instruments in traditional finance.
By tokenising these fund shares, the programme allows institutions to continue earning yield on money market assets while using their value to facilitate digital asset trades.
The shares remain securely held in regulated custody, while their market value is recognised within Binance’s trading system.
This model integrates real-world financial products into crypto infrastructure without requiring institutions to relinquish control of assets to an exchange.
Addressing counterparty risk and capital efficiency
Institutional participants in crypto markets have long faced the challenge of moving assets onto exchanges to access liquidity.
That practice can increase counterparty exposure and limit flexibility around custody and regulatory protections.
The new framework is designed to reduce that friction. By keeping tokenised money market fund shares off-exchange, institutions can trade on Binance while maintaining regulated custody arrangements.
According to the companies, this structure allows participants to earn yield on traditional fund assets and deploy them as collateral at the same time. It also improves capital efficiency, as assets do not need to sit idle on an exchange to back trading positions.
Binance said the partnership represents a further step in connecting digital assets and traditional finance.
Catherine Chen, Head of VIP and Institutional at Binance, described offering tokenised real-world assets for off-exchange collateral settlement as a natural progression in efforts to bring the two sectors closer together.
The initiative highlights the growing role of tokenised real-world assets in digital markets and signals continued institutional demand for structures that balance regulatory safeguards with access to crypto liquidity.
The programme reflects accelerating institutional convergence between tradfi and crypto.
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