Franklin Templeton and Binance have launched a program aimed at solving a persistent problem for large crypto traders: how to deploy capital on exchanges without leaving assets parked on trading platforms.
Under the new setup, institutional clients can use tokenized shares of money market funds issued through Franklin Templeton’s Benji platform as collateral when trading on Binance, while the assets themselves remain held off-exchange in regulated custody.
Instead of transferring cash or crypto onto the exchange, clients pledge tokenized fund shares held with a custodian. Binance then mirrors the collateral value within its trading environment, allowing clients to trade while the underlying assets stay outside the exchange.
The structure is designed to reduce counterparty risk following years of exchange failures and custody concerns that have made some institutions wary of leaving large balances on centralized platforms.
At the same time, the pledged assets continue to earn yield, potentially improving capital efficiency compared with idle exchange balances.
Custody and settlement for the program are handled by Ceffu, Binance’s institutional custody partner, which holds the tokenized fund shares in regulated custody while allowing them to be used as trading collateral.
The move also fits into a broader push by asset managers and banks to adapt existing cash and liquidity products for tokenized markets rather than launching entirely crypto-native funds.
Franklin Templeton has already been updating money market funds to work with blockchain-based settlement systems, including structures aimed at meeting U.S. stablecoin reserve requirements.
Regulatory tone in the U.S. has also shifted toward accommodating these models. SEC Commissioner Mark Uyeda said on Tuesday that the agency should avoid creating “unnecessary roadblocks” as tokenization moves from theory into practical market use.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
