How is Binance Facilitating Off-Exchange Collateral?

The convergence of traditional finance and digital assets has reached a new milestone as global investment leader Franklin Templeton and Binance launch a new institutional off-exchange collateral programme. 

The initiative is designed to bolster security and capital efficiency for institutional participants by allowing them to utilise tokenised money market fund shares – issued via Franklin Templeton’s Benji Technology Platform – as collateral for trading on the Binance exchange.

Catherine Chen, Head of VIP & Institutional at Binance, notes that the move responds to a clear market need for sophisticated financial tools that bridge the gap between sectors.

“Partnering with Franklin Templeton to offer tokenized real-world assets for off-exchange collateral settlement is a natural next step in our mission to bring digital assets and traditional finance closer together," she says.

“Innovating ways to use traditional financial instruments on-chain opens up new opportunities for investors and shows just how blockchain technology can make markets more efficient.”

Bridging the digital divide

The collaboration represents a significant step in making digital markets more accessible to traditional players. By using yield-bearing instruments as collateral, institutions can maintain exposure to regulated assets while actively participating in the digital asset market.

By mirroring the value of these Benji-issued fund shares within the Binance environment, the programme addresses a long-standing pain point for traders: the need to park assets directly on an exchange. Under this new structure, the tokenised assets remain held securely in regulated custody, allowing institutions to earn yield and support trading activity without compromising on liquidity or regulatory protections.

“Since partnering in 2025, our work with Binance has focused on making digital finance actually work for institutions,” says Roger Bayston, Head of Digital Assets at Franklin Templeton. 

“Our off-exchange collateral program is just that: letting clients easily put their assets to work in regulated custody while safely earning yield in new ways. That’s the future Benji was designed for, and working with partners like Binance allows us to deliver it at scale.”

Secure custody and settlement

Central to the programme’s security framework is the role of Ceffu, Binance’s crypto-native institutional custody partner. Ceffu provides the infrastructure to ensure that while the assets are pledged as collateral, they remain in a controlled, regulated environment. This set-up is designed to reduce counterparty risk, a primary concern for institutional participants.

Ian Loh, CEO of Ceffu, highlights that the demand for such models is rising as the market matures.

“Institutions increasingly require trading models that prioritise risk management without sacrificing capital efficiency," he says. "This programme demonstrates how off-exchange collateral can support institutional participation in digital markets while maintaining strong custody and control.”

Strategic expansion

The launch builds upon a strategic collaboration between the two firms that began in September 2025. For Franklin Templeton, which has been active in the blockchain space since 2018, the programme is an extension of its work in tokenomics and data science.

By bridging tokenised money market funds into modern trading environments, the firm is enabling institutions to manage risk and move capital with greater agility.

For Binance, the inclusion of more tokenised real-world assets addresses the growing institutional appetite for stable, yield-bearing collateral that can be settled 24/7. This gives investors greater choice and enhances their trading experience on the world’s largest regulated digital asset exchange.