A Wall Street Asset Manager Just Crossed a New Line on Binance

Tokenized money market funds are no longer just a concept. Indeed, they are now moving directly into trading infrastructure.

Binance and Franklin Templeton have launched an institutional collateral program that allows tokenized money market fund (MMF) shares to be used as collateral on Binance.

Moreover, the initiative marks the first concrete product rollout under the collaboration both firms announced last year.

As a result, this collaboration connects traditional fund structures directly to crypto-native trading systems.

Binance and Franklin Templeton Bring Tokenized MMFs On-Exchange

According to Binance’s official announcement, the program enables eligible institutional clients to use tokenized MMF shares issued via Franklin Templeton’s Benji platform as collateral within Binance’s ecosystem.

Additionally, the shares represent interests in a U.S. government money market fund and are tokenized on-chain through Franklin Templeton’s infrastructure.

Rather than forcing institutions to liquidate traditional assets into stablecoins or fiat before deploying capital into trading strategies, the structure allows those tokenized fund shares to serve directly as margin collateral.

As a result, this bridges regulated traditional asset management products with crypto exchange collateral and margin systems.

Franklin Templeton’s Benji platform has already been used to issue tokenized fund shares on blockchain infrastructure.

Therefore, this integration will allow those tokenized assets to gain new functionality inside a major exchange environment.

For Binance, this expands the types of assets that can sit inside its collateral framework. For Franklin Templeton, it extends the utility of tokenized fund products beyond passive holding.

Exchanges Continue Expanding the Financial Toolkit

This move reflects a broader shift in how large exchanges are evolving.

Instead of functioning solely as trading venues, platforms like Binance are gradually integrating traditional financial instruments into their infrastructure.

Moreover, collateral flexibility is a critical component of professional trading operations, and enabling tokenized MMFs to serve this role expands the capital efficiency of large participants.

Therefore, by allowing yield-bearing tokenized fund shares to act as collateral, institutions can potentially maintain exposure to conservative cash-equivalent strategies. While simultaneously deploying capital into derivatives or spot positions.

This signals that exchanges are no longer just crypto marketplaces. Indeed, they are becoming hybrid financial platforms that interact directly with regulated asset managers.

As tokenization grows, the boundary between exchange infrastructure and traditional fund administration continues to narrow.

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