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Binance collaborates with Franklin Templeton to utilize tokenized money market funds as collateral for off-exchange transactions.
Institutions can now utilize Benji-issued tokenized money market funds as off-exchange collateral for trading on Binance through Ceffu’s custody layer.
Binance sign (modified by Coindesk)
What to know:
- The value of Benji-issued fund shares is reflected in Binance’s trading ecosystem.
- The tokenized assets are securely maintained off-exchange under regulated custody.
Binance, recognized as the largest cryptocurrency exchange globally, is collaborating with the crypto-friendly traditional finance firm Franklin Templeton to launch an institutional off-exchange collateral initiative, enhancing security and capital efficiency in digital markets.
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This new offering enables qualified clients to utilize tokenized money market fund shares provided through Franklin Templeton’s Benji Technology Platform as off-exchange collateral for trading on Binance via Ceffu’s, the exchange’s partner custody layer.
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This program addresses a longstanding challenge for institutional traders by permitting them to leverage traditional, regulated, yield-generating money market fund assets in digital markets without needing to place them on an exchange, as stated in a press release.
The value of Benji-issued fund shares is represented in Binance’s trading environment, while the tokenized assets themselves are securely held off-exchange in regulated custody. This minimizes counterparty risk, allowing institutional participants to earn yield and facilitate their trading activities without concerns regarding custody, liquidity, or regulatory safeguards, according to the firms.
“Collaborating with Franklin Templeton to provide tokenized real-world assets for off-exchange collateral settlement aligns with our objective to bridge digital assets and traditional finance,” stated Catherine Chen, Head of VIP & Institutional at Binance.
