Franklin Templeton Supports Tokenized MMF Shares as Bybit Trading Collateral
Summary
- Franklin Templeton is offering an off-exchange collateral program that allows tokenized money market fund (MMF) shares to be used as trading collateral on Bybit.
- Investors can borrow Tether (USDT) or USDC against tokenized MMF shares while continuing to earn yield from the underlying assets.
- The shares are issued through Franklin Templeton's Benji Technology Platform, while the underlying assets are held at regulated custody platform ByCustody.
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Franklin Templeton is offering an off-exchange collateral program that allows investors to use shares of a tokenized money market fund as trading collateral on crypto exchange Bybit.
CoinDesk reported on September 28 that investors can borrow Tether's USDT or Circle's USDC against the tokenized MMF shares while continuing to earn yield on the underlying assets. The fund has net assets of about $686 million.
The underlying assets are held off-exchange at regulated custody platform ByCustody. On Bybit, the value of those assets is recognized as trading collateral.
The shares are issued through Franklin Templeton's Benji Technology Platform, the firm's blockchain-based recordkeeping and transfer infrastructure. Franklin Templeton also provides similar off-exchange collateral services on Binance and OKX.
