BounceBit partners with Franklin Templeton to launch BB Prime, merging tokenized Treasuries and DeFi to offer a 4.5% yield in CeDeFi strategies.
BounceBit has announced a major partnership with global investment firm Franklin Templeton. Together, they have launched BB Prime, a new product that blends centralized finance (CeFi) and decentralized finance (DeFi), also known as CeDeFi. BounceBit announced it on its official X (previously Twitter) account. It emphasizes the need of this tie-up in the emerging global digital financial world.
The main concept of BB Prime is the establishment of an orderly yield platform. It is collateralized and settled with BENJI tokenized fund of Franklin Templeton. The backing of this fund is through short term U.S. government securities. This makes it provide an on-chain stable yield of approximately 4.5%, introducing a more stable crypto market. This enables BB Prime to merge the security of the real-world assets (RWAs) with the rapidity of crypto trading.
Besides the launch, BounceBit also presented a BB token buyback program, which is supported by more than 10 million of protocol revenue. This demonstrates the interest of the platform in long-term development and sustainability. BounceBit will purchase its tokens using its generated revenue in order to boost the conviction of investors.
Notably, through this partnership, tokenized U.S. Treasury bonds are being actively traded, in real-time trading strategies, as opposed to merely being held passively. Up till recently, the majority of tokenized assets were merely issued and stored. Now these assets are not only profitable, but they also bring revenue actively with the help of smart and efficient strategies to be utilized with BB Prime. The platform offered by BounceBit enables the unending use of the tokenized Treasuries to generate yields, both in centralized and decentralized exchanges.
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Franklin Templeton has been a leader in tokenizing traditional financial instruments. In 2021, they have introduced BENJI, the first tokenized U.S. money market fund. This fund has direct on-chain ownership, and thus it is simpler to handle and trace. BENJI tokens are no longer sitting idle, however, with the BB Prime platform, they are now being utilized in real yield-generating strategies.
It has obvious benefits to use tokenized money market funds such as BENJI as collateral. The tokens have superior risk-adjusted returns over stablecoins, which are typically applied to DeFi lending. The yield of BENJI provides traders with 4.5% of RWA with the possibility to receive returns on the exchange using the same tokens. This has the effect of creating a yield stacking and this is very appealing to active investors.
The opening of BB Prime demonstrates how the future of CeDeFi might appear. It is built on institutional-level assets. It can be controlled using programmable logic. This may help bring traditional financial stability into the crypto markets. BounceBit + Franklin Templeton The partnership between the two companies has been more than symbolic; it has been a live demonstration of how real-world assets can drive the next-generation DeFi platform.
BounceBit CEO Jack Lu emphasized this advancement, saying that this is the first tokenized U.S. Treasury bonds put into practice in a live income strategy. BB Prime will become one of the main platforms where tokenized RWA can be used in structured finance with the use of full integrations of BENJI tokens.
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