In a landmark move for institutional digital finance, Binance and Franklin Templeton announced on February 11, 2026, the launch of a new off-exchange collateral program. This initiative allows eligible institutional clients to use tokenized shares of Franklin Templeton’s money market funds — issued through its proprietary Benji Technology Platform — as collateral for trading on the world’s largest cryptocurrency exchange. The program addresses a long-standing “pain point” for major financial institutions that have historically been wary of parking significant assets directly on centralized trading platforms due to counterparty and custodial risks. Under this new framework, the underlying assets remain securely held off-exchange in a regulated environment provided by Ceffu, Binance’s institutional-grade custody partner. While the physical fund shares stay in third-party custody, their value is mirrored within Binance’s trading system, enabling firms to support their spot and derivatives positions without moving their capital out of a regulated ecosystem.
Enhancing Capital Efficiency and Preserving Yield in Digital Markets
The strategic value of the Franklin Templeton partnership lies in its ability to let institutions “put their assets to work” in two ways simultaneously. By using Benji-tokenized money market fund shares as collateral, traders can earn a steady yield — currently estimated at 4.5% — on their idle capital while using that same capital to support active trading strategies on Binance. Roger Bayston, Head of Digital Assets at Franklin Templeton, stated that the program is designed to make digital finance “actually work for institutions” by providing a familiar, yield-bearing instrument that can settle 24/7. This model significantly improves capital efficiency, as firms no longer need to choose between holding low-yield stablecoins on an exchange or keeping their funds in traditional accounts that cannot be used for crypto margin. For Binance, integrating tokenized real-world assets (RWAs) like the Benji fund is a natural evolution in its mission to bridge the gap between traditional finance and the blockchain-powered markets of the future.
Building a Secure Infrastructure Layer for the Next Trillion Dollars
The technical backbone of this program is powered by Ceffu, which ensures that the pledge of tokenized shares meets the highest standards of security and regulatory oversight. Catherine Chen, Head of VIP and Institutional at Binance, noted that offering stable, yield-bearing collateral is a response to the increasing demand for institutional models that prioritize risk management without sacrificing speed. This launch builds upon the strategic collaboration first announced by the two firms in September 2025 and mirrors similar successful models, such as BlackRock’s BUIDL fund being accepted as collateral on several major derivatives platforms. By allowing traditional regulated products to function as on-chain collateral, Binance and Franklin Templeton are effectively transforming the global treasury market into a high-velocity settlement layer for digital assets. As more asset managers look to tokenize their funds in 2026, this partnership sets a definitive blueprint for how the “trillion-dollar” traditional finance stack can be securely integrated into the 24/7 liquidity of the global cryptocurrency ecosystem.
