Bybit partners with Franklin Templeton, enabling tokenized money market funds to be used as trading collateral.

TechFlow reports that on September 28, Bybit announced a strategic partnership with global asset manager Franklin Templeton. The two parties will collaborate on tokenized assets, institutional liquidity, and on-chain wealth management.

The inaugural collaboration is an OTC collateral program. Eligible institutional clients may deposit tokenized money market fund shares issued by Franklin Templeton via the Benji Technology Platform into ByCustody and utilize them as collateral to secure USDT or USDC trading limits on Bybit. The assets remain off-exchange, allowing investors to continue earning asset yields.

Yoyee Wang, Head of Global RWA and TradFi at Bybit, stated that as institutions accelerate digital asset adoption, investors are seeking greater capital efficiency, flexibility, and risk management. This partnership will broaden the pool of high-quality collateral available to institutions, improving capital utilization efficiency while preserving yield exposure.

Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton, noted that tokenization is transforming financial markets. This collaboration will further increase the accessibility of actively managed investment products across wallet ecosystems, and by linking the Benji Technology Platform with Bybit, it will create a new pathway for regulated yield-bearing assets to enter the digital asset market.