Franklin Templeton and Binance Launch Off Exchange Collateral for Institutional Traders

Highlights:

• Franklin Templeton and Binance launched an off-exchange collateral program for institutional traders.
• Institutions can trade on Binance while keeping tokenized money market fund shares in regulated custody.
• The pledged fund shares continue earning yield instead of sitting idle on the exchange.

Asset manager Franklin Templeton and Binance launched an off-exchange collateral program for institutional clients. The structure allows eligible traders to use tokenized money market fund shares as collateral on Binance. Clients do not move cash or crypto onto the exchange. Instead, they pledge fund shares issued through Franklin Templeton’s Benji Technology Platform. The underlying assets remain in regulated custody during the process.

BINANCE PARTNERS WITH FRANKLIN TEMPLETON TO ALLOW INSTITUTIONAL CLIENTS TO USE TOKENIZED MONEY MARKET FUND SHARES AS OFF-EXCHANGE COLLATERAL! 🚀💼#Binance #FranklinTempleton #TokenizedAssets #MoneyMarketFund pic.twitter.com/kd6Q1FzIAI

— Crypto News Hunters 🎯 (@CryptoNewsHntrs) February 11, 2026

Binance mirrors the value of the pledged shares inside its trading system. Clients can use that reflected value to support spot and derivatives positions. Ceffu serves as the Binance institutional custody partner for the arrangement. It holds the tokenized fund shares in regulated custody accounts. Trading access and asset storage remain separate under the model.

The program addresses a long-standing concern among large trading firms. Many institutions reduced exchange balances after several platform failures in recent years. This setup allows them to keep assets outside the exchange while maintaining market access. The pledged shares continue earning yield during trading activity. Clients avoid converting holdings into idle balances on a platform.

The announcement described the model as a way to combine regulated fund products with digital trading infrastructure. It allows traditional liquidity products to support crypto market activity. The firms stated that eligible clients can integrate the structure into existing custody frameworks. The program focuses on institutional participants rather than retail users.

How the Custody and Trading Structure Works Behind the Scenes

Franklin Templeton will issue the tokenized shares through Benji. Benji operates as the firm’s proprietary blockchain-based technology stack. The platform enables the distribution of tokenized money market fund shares. Clients hold those shares with a custodian instead of transferring them to Binance. They then pledge the holdings as collateral for trading.

Ceffu is the custodian and settlement agent of the pledged shares. It keeps the tokenized assets in controlled accounts, and Binance acknowledges their value. Binance replicates the quantity of collateral in its trading engine. Clients are able to open and maintain positions without moving underlying shares. Every entity has a specific functional role.

Binance and Franklin Templeton (@FTDA_US @FTI_US) are launching an institutional collateral program, enabling tokenized money market fund (MMF) shares issued via Franklin Templeton’s Benji Technology Platform to be used as collateral on Binance.

This is the first initiative… pic.twitter.com/QS1ZKbBOCC

— Binance (@binance) February 11, 2026

The tokenized structure also supports continuous revaluation. Money market fund shares can update in value on the chain throughout the day. That feature aligns with round-the-clock crypto markets. It allows institutions to adjust collateral positions as trading conditions change. The release stated that this process improves operational flexibility for large accounts.

Roger Bayston, Head of Digital Assets at Franklin Templeton, commented on the partnership. He said, “Since partnering in 2025, we have focused on making digital finance work for institutions. This program lets clients use assets in regulated custody while earning yield. That is what Benji was built to deliver.”

Franklin Templeton and Binance Expand Their Digital Asset Strategy

The launch builds on joint efforts that have centered on practical institutional use cases. The new collateral structure extends that cooperation into margin and collateral management. It links regulated fund products with Binance trading infrastructure.

Franklin Templeton has been expanding tokenized money market fund initiatives. Earlier this year, the firm updated two institutional funds to support stablecoin reserve requirements. They also enable distribution through blockchain-based settlement systems. Benji operates across several public blockchains. The platform runs on Ethereum, Arbitrum, Solana, and Stellar. Franklin Templeton rolled out Benji on BNB Chain in September last year. The expansion broadened access to tokenized fund shares within the Binance ecosystem.

Regulatory discussion in the United States has addressed tokenization in recent days. SEC Commissioner Mark Uyeda said the agency should avoid unnecessary roadblocks as tokenization moves into practical use. Meanwhile, BNB is trading at $597.27 as of press time, a 5.71% decrease in the past day. However, the trading volume is up 1.98% to $1.83 billion, while the market cap stands at $81.44 billion.