Binance, the world’s largest cryptocurrency exchange, is working with crypto-friendly trading firm Franklin Templeton to offer an institutional off-exchange guarantee program, making digital markets safer and more capital efficient.
The new service allows eligible customers to use tokenized money market fund shares issued through Franklin Templeton’s Benji technology platform as off-exchange collateral to trade on Binance using Ceffu, the exchange’s partner custody layer.
The program alleviates a long-standing problem for institutional traders by allowing them to use traditional, regulated, yield-producing money market fund assets in digital markets without having to park them on an exchange, according to a press release.
The value of fund shares issued by Benji is reflected in the Binance trading environment, while the tokenized assets themselves are held securely off-exchange in a regulated custody location. This reduces counterparty risk, allowing institutional participants to earn returns and support their trading activities without hedging in custody, liquidity or regulatory protections, the companies said.
“Partnering with Franklin Templeton to offer real-world tokenized assets for off-exchange collateral settlement is a natural next step in our mission to bridge digital assets and traditional finance,” said Catherine Chen, Head of VIP and Institutional at Binance.
