Franklin Templeton and Bybit announced a strategic collaboration on September 28, 2026, aimed at expanding institutional access to tokenized investing. The first initiative allows eligible clients to use tokenized money market fund shares issued through Franklin Templeton's Benji Technology Platform as off-exchange collateral when trading on Bybit.
Under the arrangement, eligible investors can pledge Benji-issued fund shares through ByCustody, an institutional-grade custody platform, to access USDT or USDC trading credit lines on Bybit. The underlying tokenized assets remain held outside the exchange in custody, while their value is mirrored within Bybit's trading environment. Clients can continue earning yield on the fund shares while using their collateral value to support trading activity.
Franklin Templeton reported that the Franklin OnChain U.S. Government Money Fund, or FOBXX, held $686.64 million in net assets as of August 31. One share of the fund is represented by one BENJI token on Franklin Templeton's blockchain-integrated recordkeeping platform. The fund's latest published seven-day current yield was 3.57% as of September 16, while its seven-day effective yield stood at 3.63%.
Yoyee Wang, Bybit's global head of RWA and TradFi, said institutional investors increasingly expect flexibility, capital efficiency, and risk management standards similar to those used in traditional markets. Wang noted that expanding high-quality collateral options helps clients deploy capital more effectively while maintaining exposure to regulated investment products.
The broader collaboration also includes plans for a wallet-based tokenized wealth product on the Bybit exchange and Mantle blockchain, providing access to Franklin Templeton investment strategies. Bybit and Mantle will release further details separately, including launch timing, composition, eligibility rules, and jurisdictional availability. The companies also plan digital content and education initiatives for wallet-based retail investors.
Franklin Templeton has been extending Benji access across institutional crypto platforms. In February, it launched a similar off-exchange collateral program with Binance. In June, it partnered with MoonPay to connect Benji with MoonPay Trade, and Calais Digital Assets tested UBS's tokenized uMINT money market fund as off-exchange collateral through Bybit, ByCustody, and DigiFT. In August, the U.S. Securities and Exchange Commission's Division of Investment Management issued no-action relief allowing Franklin Templeton registered mutual funds and ETFs to hold shares of the blockchain-based fund under the described custody structure.
Sandy Kaul, head of digital assets and innovation at Franklin Templeton, said tokenization is reshaping finance and that extending Benji connectivity to Bybit gives institutions another trusted venue to put regulated, yield-bearing assets to work in digital markets.
