Franklin Templeton Binance Collateral Program Enhances Institutional Trading
The Franklin Templeton Binance collateral program is now live, introducing a new institutional off-exchange collateral solution designed to improve security and capital efficiency in digital markets.
Through this initiative, eligible clients can use tokenized money market fund shares issued via Franklin Templeton’s Benji Technology Platform as collateral while trading on Binance. Importantly, the assets remain securely held off-exchange in regulated custody.
As a result, institutional traders gain greater protection while maintaining access to liquidity.
Why the Franklin Templeton Binance Collateral Program Matters
Institutional traders have long faced a critical challenge: depositing assets directly on exchanges often increases counterparty risk. However, the Franklin Templeton Binance collateral program removes this obstacle.
Instead of parking funds on an exchange, the value of Benji-issued shares mirrors within Binance’s trading environment. Meanwhile, the underlying tokenized assets stay protected in regulated custody.
Consequently, the program allows institutions to:
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Reduce counterparty risk
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Earn yield on regulated assets
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Maintain liquidity
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Strengthen regulatory protections
“Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions,” said Roger Bayston, Head of Digital Assets at Franklin Templeton.
Ultimately, the program enables clients to put assets to work while safely generating yield.
Bridging Traditional Finance and Blockchain Technology
The Franklin Templeton Binance collateral program represents another step toward integrating traditional finance with digital assets.
“Offering tokenized real-world assets for 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.
Moreover, blockchain-based collateral opens new opportunities for investors while improving overall market efficiency.
Secure Custody Infrastructure Supports the Program
Assets participating in the program remain off-exchange within a regulated custody framework. Additionally, custody and settlement infrastructure is supported by Ceffu, Binance’s institutional crypto-native custody partner.
“Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency,” said Ian Loh, CEO of Ceffu.
Therefore, the program supports institutional participation while maintaining strong custody controls.
Expanding Institutional Access to Tokenized Assets
The launch builds on Franklin Templeton and Binance’s strategic collaboration announced in September 2025. Since then, both firms have expanded their networks of off-exchange partners.
By leveraging Benji to bridge tokenized money market funds, Franklin Templeton is transforming trusted investment products for modern markets. Consequently, institutions can trade, manage risk, and move capital more efficiently.
Growing demand for stable, yield-bearing collateral also makes tokenized assets increasingly attractive for 24/7 digital markets.
What the Franklin Templeton Binance Collateral Program Signals for Digital Finance
The Franklin Templeton Binance collateral program highlights accelerating institutional adoption of blockchain-based financial infrastructure.
Moving forward, solutions that combine regulated custody with tokenized assets will likely shape the next phase of digital finance.
Ultimately, the collaboration positions both companies at the forefront of secure, institutional-grade crypto trading innovation.
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