Binance and Franklin Templeton launch tokenized MMF collateral program, enabling institutions to trade efficiently, reduce risk, and bridge traditional finance with blockchain markets.
Binance and Franklin Templeton have activated their first joint tokenization initiative for institutions worldwide. The program enables tokenized money market fund shares to act as a trading collateral. Consequently, the launch is announcing accelerating links between traditional finance and digital assets.
Institutions Gain New Collateral Flexibility Through Tokenization
Under the arrangement, eligible clients are allowed to offer the shares of MMF issued by Benji off-exchange. Meanwhile, Binance reflects their value within their trading environment by their Ceffu infrastructure. Therefore, assets are kept in 3rd party custody and traders have market exposure.
Binance and Franklin Templeton (@FTDA_US @FTI_US) are launching an institutional collateral program, enabling tokenized money market fund (MMF) shares issued via Franklin Templeton’s Benji Technology Platform to be used as collateral on Binance.
This is the first initiative… pic.twitter.com/QS1ZKbBOCC
— Binance (@binance) February 11, 2026
Franklin Templeton’s Benji Technology Platform sells tokenized shares backed by regulated funds. These funds usually invest in short-term government securities and quality instruments.
Importantly, the structure addresses a nagging institutional issue of counterparty risk. Previously, firms involved in custody disputes had often left collateral directly on exchanges, accepting these trade-offs in custody. Now, tokenization can facilitate the generation of yields without compromising regulatory or governance protections.
According to Binance, the system allows capital efficiency throughout 24/7 trading cycles. In addition, institutions can hold assets with custodians that conform to internal compliance constructs. Hence, treasury management, liquidity management, and risk controls are more fluid.
Roger Bayston said the initiative makes digital finance workable for large institutions. He focused on secure custody, continuity of yields and scalable blockchain-based settlement mechanisms. Furthermore, Binance pointed out enhanced efficiency in the use of traditional instruments on-chain.
Catherine Chen referred to tokenized real-world assets as a strategic evolution of nature. She said blockchain integration may increase investor choice while hardening the flexibility of collateral. For this reason, there is greater overlap between regulated products and crypto venues being observed by market participants.
Market Structure Trends Support Off-Exchange Collateral Growth
Industry analysts attribute the rollout to the growing demand for stable yield-bearing collateral. Moreover, tokenised MMFs provide transparency, faster settlement, and programmable ownership records. Therefore, adoption may be accelerated due to the modernization of trading and treasury operation by institutions.
Ceffu’s CEO Ian Loh emphasised risk management without compromising overall capital efficiency. He explained off-exchange collateral models help firms balance liquidity, custody and governance needs. Similarly, market observers expect more banks and asset managers to consider tokenization partnerships.
Data from 2025 reports saw tokenized real world assets exceed $10B globally. Even though the numbers are going up and down, the momentum was very good across funds, bonds and collateral experiments. So Binance and Franklin Templeton’s step is aligned to a measurable industry trajectory.
Importantly, tokenized money market funds are a combination of known structures and modern blockchain rails. They enable programmable transfers, fractional ownership and near-instant settlement visibility. As a result, institutions benefit with instruments to allocate capital efficiently and diverse liquidity strategies.
Going forward both companies showed plans to add more tokenized collateral offerings. Further, future integration may involve bonds, treasuries or additional regulated fund vehicles. Overall, the initiative is a sign of confidence in compliant bridges between the TradFi and crypto markets.
Although, experts warn that regulatory clarity and interoperability standards are still key. Meanwhile, successful implementation could lead to more widespread participation from pensions, insurers and sovereigns. Therefore, tokenization continues moving from experimentation towards basic monetary market infrastructure.
Ultimately, off-exchange collateral models may change the institutional digital trading exposure. For now, Binance, Franklin Templeton, and Ceffu are the ones that have a blueprint working. As a result, markets pay a lot of attention to adoption metrics, liquidity flows and the regulatory response.