---
title: "Bybit Partners With Franklin Templeton to Offer Off-Exchange Tokenized Collateral"
description: "Institutions can pledge Franklin Templeton Benji-issued money market shares via ByCustody to unlock stablecoin credit on Bybit."
url: https://basisdesk.news/news/bybit-franklin-templeton-tokenized-collateral-program
published: 2026-09-28T22:21:38.206Z
modified: 2026-09-28T22:21:38.206Z
section: Institutions & ETFs
author: Basis Desk Newsroom (AI-generated, source-verified)
sentiment: neutral
tickers: [USDT, USDC]
tags: [Bybit, Franklin Templeton, tokenization, RWA, institutional-custody, Mantle]
license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice.
---

# Bybit Partners With Franklin Templeton to Offer Off-Exchange Tokenized Collateral

Institutions can pledge Franklin Templeton Benji-issued money market shares via ByCustody to unlock stablecoin credit on Bybit.

## Key points

- Institutional Bybit users can pledge Franklin Templeton Benji tokenized fund shares through ByCustody for USDT or USDC credit lines [1].
- Underlying tokenized assets remain in off-exchange custody, allowing institutions to earn yield while trading on Bybit [1].
- The collaboration includes a tokenized wealth product planned for the Bybit platform and the Mantle network [1].

## Editorial remark

- **Context:** Traditional asset managers have increasingly turned to tokenized funds to capture on-chain liquidity, with Franklin Templeton leveraging its Benji platform across multiple networks to facilitate institutional treasury operations.
- **Impact:** Institutional traders gain capital efficiency by unlocking trading collateral against yield-bearing cash equivalents without incurring custodial exchange exposure.
- **Watch:** Technical specifications and rollout dates for the retail-focused tokenized investment product on the Mantle blockchain.

Cryptocurrency exchange Bybit announced a strategic collaboration with asset management firm Franklin Templeton on Sept. 28, rolling out an off-exchange collateral system for institutional clients [1]. Under the agreement, qualified trading firms can deploy tokenized money market fund shares to access liquidity without moving assets directly onto the trading venue [1].

The structure utilizes Franklin Templeton's Benji Technology Platform, a proprietary blockchain-based recordkeeping and transfer agency infrastructure [1]. Institutional clients deposit their Benji-issued shares through ByCustody to obtain lines of credit denominated in $USDT or USDC [1]. Because the fund tokens remain segregated within institutional custody off-exchange, counterparties can reduce exposure to centralized exchange risk while continuing to accrue underlying yield on their cash-management allocations [1]. At the time of writing, USDT traded flat at $0.9995.

## Expansion Into Retail and Mantle Ecosystem

Beyond institutional credit facilities, the partnership spans retail and ecosystem products [1]. Bybit and Franklin Templeton confirmed plans to introduce a tokenized wealth offering accessible via the exchange interface and the Mantle network, which will surface Franklin Templeton investment strategies to wallet users [1]. Additional operational specifics concerning the Mantle deployment will be published in a separate release [1].

The asset manager, which oversees $1.7 trillion in assets under management, indicated the arrangement is designed to connect traditional investment structures with decentralized wallet architectures [1]. The firms also intend to issue joint educational resources focused on portfolio diversification and goals-based investing for on-chain participants [1].

## Sources

1. [Bybit and Franklin Templeton Form Strategic Collaboration to Expand Access to Tokenized Investing](https://www.prnewswire.com/news-releases/bybit-and-franklin-templeton-form-strategic-collaboration-to-expand-access-to-tokenized-investing-302891429.html) — prnewswire.com, 2026-09-28

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Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai