Bybit partners with Franklin Templeton to expand access to tokenized investing

What happened

Bybit and Franklin Templeton announced a strategic collaboration on Sept. 28, 2026. The first program links Franklin Templeton's Benji Technology Platform to ByCustody, Bybit's institutional custody platform, and to Bybit's trading infrastructure. The partnership opens with an off-exchange collateral program that lets institutional clients use tokenized money market fund shares as collateral when trading on Bybit.

Under the program, eligible investors pledge fund shares issued through the Benji Technology Platform and can access USDT or USDC trading credit lines. The custody platform holds the assets off-exchange, while Bybit recognizes their mirrored value when providing that credit. Eligible investors can keep receiving fund yield while using the collateral value to support trading activity.

The two firms also plan a tokenized wealth product on the Bybit exchange and the Mantle blockchain network, aimed at wallet-based investors who want access to Franklin Templeton investment strategies. Bybit and Franklin Templeton will also release digital content programs and education initiatives covering traditional investment strategies such as goals-based investing and diversification. Further details on the wealth product will be shared separately by Bybit and Mantle.

Why it matters

For Bybit, the arrangement widens the range of collateral institutional clients can use without moving assets onto the exchange. Yoyee Wang, Bybit's global head of RWA and TradFi, said institutional investors increasingly expect flexibility, capital efficiency and risk management standards similar to those in traditional markets. Wang said the expanded collateral options are intended to let clients deploy capital while keeping exposure to regulated investment products.

Franklin Templeton frames the tie-up as a way to connect regulated, yield-bearing assets to digital markets. Sandy Kaul, the firm's head of digital assets and innovation, said linking the Benji platform to Bybit gives institutions a trusted place to put those assets to work. Franklin Templeton has already run a comparable off-exchange Benji collateral program with Binance since February.

What the data shows

Franklin OnChain U.S. Government Money Fund held $686.64 million in net assets on August 31, Franklin Templeton reports.

The fund's latest published seven-day current yield was 3.57% as of Sept. 16, and its seven-day effective yield was 3.63%.

Franklin Templeton is a global investment manager with $1.7 trillion in assets under management, and Bybit is described as the world's second-largest cryptocurrency exchange by trading volume.

One share of the Franklin fund is represented by one BENJI token on Franklin Templeton's blockchain-integrated recordkeeping platform.

Background

• Franklin Templeton and Binance launched an institutional program in February that lets eligible clients use Benji-issued tokenized money market fund shares as off-exchange collateral while the assets stay with regulated custody infrastructure. Franklin Templeton announced that Binance arrangement on Feb. 11.
• The Franklin fund invests mainly in U.S. government securities, cash and repurchase agreements.
• ByCustody describes its off-exchange setup as a model where assets remain in custody while a mirror-mapping layer supports trading access.

Questions readers ask

Sources

1. 1 CoinDeskCrypto-friendly institution Franklin Templeton brings its tokenized collateral service to... · 28 Sep, 11:00 UTC
2. 2 FinboldBybit partners with Franklin Templeton to expand access to tokenized investing · 28 Sep, 12:00 UTC
3. 3 Crypto.newsFranklin Templeton brings $687M tokenized fund to Bybit · 28 Sep, 12:38 UTC