Franklin Templeton Fund Shares Become Bybit Trading Collateral
Bybit is allowing certain clients to use Benji-issued money market fund shares from Franklin Templeton as collateral to obtain USDT or USDC credit lines. The pledged shares remain in custody and continue to accrue yield while serving as collateral. Franklin Templeton previously implemented the same arrangement with Binance in February.
Why It Matters
This arrangement links traditional money market fund products with crypto lending facilities, illustrating growing integration between legacy asset managers and digital-asset platforms. It may expand collateral options for institutional users while preserving custody and yield on underlying fund shares.
Key Facts
- Collateral type: Benji-issued money market fund shares from Franklin Templeton
- Platform offering credit lines: Bybit
- Credit line currencies: USDT and USDC
- Custody and yield: Shares remain in custody and continue to pay yield while pledged
- Prior implementation: Franklin ran the same structure with Binance in February
Bybit has introduced a program that permits eligible clients to pledge Benji-issued money market fund shares from Franklin Templeton as collateral for obtaining credit lines denominated in USDT or USDC. Under the arrangement, the fund shares remain in custody rather than being transferred out, and they continue to generate yield for the holder while serving as collateral for the borrowed stablecoins.
The structure mirrors a deal Franklin Templeton previously executed with Binance in February, indicating a repeat of a model that uses traditional money market fund holdings to support crypto-platform lending services. By keeping shares in custody, the setup preserves standard asset protections and income flows associated with the funds even as they secure lending exposure on a digital-asset platform.
Bybit’s offering targets a subset of clients who meet eligibility criteria for the program; the source material does not detail those criteria or the specific lending terms such as loan-to-value ratios, interest rates, or eligibility thresholds. The announcement highlights continuity in collaboration between an established asset manager and crypto exchanges, reflecting a trend of integrating conventional institutional products with digital-asset infrastructure.
No additional operational details, client requirements, or regulatory considerations were provided in the source excerpt. The reporting focuses on the core mechanics: use of Benji-issued Franklin Templeton money market fund shares as collateral, availability of USDT/USDC credit lines on Bybit, and the preservation of custody and yield during the pledge.