Franklin Templeton and Binance Launch Program Using Tokenized Money Funds as Trading Collateral

Global asset manager Franklin Templeton has partnered with Binance, the world’s largest cryptocurrency exchange, to launch a program that allows institutional investors to use tokenized money market funds as collateral for trading. This initiative specifically utilizes the Franklin OnChain U.S. Government Money Fund (FOBXX), represented by the Benji token, enabling institutional clients to back their trading activities on Binance while continuing to earn yields on their underlying assets. This move represents a significant step in the integration of traditional finance (TradFi) and digital assets, highlighting the growing trend of Real World Asset (RWA) tokenization. By allowing tokenized funds to serve as collateral, the program improves capital efficiency and provides a more seamless bridge for institutional participation in the crypto ecosystem. The collaboration underscores Franklin Templeton’s leadership in blockchain-based investment products and Binance’s commitment to expanding its suite of institutional-grade financial tools.

Source: Franklin Templeton, Binance roll out program letting institutions use tokenized money funds as trading collateral