Franklin Templeton is letting institutions pledge tokenized money market fund shares as collateral for trading on Binance, while keeping the fund assets in off‑exchange custody.
Global investment manager Franklin Templeton announced the launch of an institutional off‑exchange collateral program with Binance that lets clients use tokenized money market fund (MMF) shares to back trading activity while the underlying assets remain in regulated custody.
According to a Wednesday news release shared with Cointelegraph, the framework is intended to reduce counterparty risk by reflecting collateral balances inside Binance’s trading environment, rather than moving client assets onto the exchange.
Eligible institutions can pledge tokenized MMF shares issued via Franklin Templeton’s Benji Technology Platform as collateral for trading on Binance.
