CoinDesk reported that Franklin Templeton is operating an off-exchange collateral program that allows tokenized money market fund (MMF) shares to be used as collateral for cryptocurrency trading on Bybit. Investors can borrow USDT or USDC against these shares while retaining returns from the underlying assets. The net assets of the Franklin Templeton tokenized fund used as collateral are approximately $686 million. The actual underlying assets are held on ByCustody, a regulated custody platform outside the exchange, and their value is reflected in the Bybit trading environment to provide trading liquidity. These shares are issued through Franklin Templeton's blockchain-based record-keeping and transfer infrastructure, the Benji Technology Platform. Franklin Templeton already provides similar off-exchange collateral services on Binance and OKX.
