Franklin Templeton and Bybit Launch Tokenized Collateral Program

Franklin Templeton and Bybit have launched an off-exchange collateral program allowing eligible institutional clients to use tokenized money-market fund shares to obtain USDT or USDC trading credit, while the shares remain in custody outside the exchange. The companies announced the arrangement on September 28, 2026. They did not disclose how much collateral has been posted or credit issued through the program. The shares are issued through Franklin Templeton’s Benji Technology Platform. Eligible clients pledge them through ByCustody, Bybit’s institutional custody service, and can then access trading credit on Bybit. The underlying assets stay in off-exchange custody, while their collateral value is recognized within Bybit’s trading system. Clients can use that value without selling their fund holdings, which may continue to generate income. The program’s practical terms remain undisclosed. The companies have not specified eligibility rules, collateral haircuts, credit limits, fees, liquidation arrangements, supported trading products or geographic availability.