Franklin Templeton Makes Tokenized Money Funds Usable as Bybit Collateral

Is Franklin Templeton's Bybit collateral program live?

Yes. Bybit says eligible investors can now pledge Benji-issued fund shares through ByCustody and use their mirrored value for USDT or USDC trading credit.

Orbitrum Investor Impact

Why does the Bybit partnership matter for Franklin Templeton?

It expands the practical use and institutional distribution of Franklin Templeton's tokenized funds by allowing them to serve as yield-bearing trading collateral. The companies did not disclose expected inflows or revenue from the program.

Does the $686.64 million represent collateral already pledged to Bybit?

No. $686.64 million was the Franklin OnChain U.S. Government Money Fund's total net assets as of August 31, 2026, not an amount reported as committed to Bybit.

Do investors have to move the tokenized assets onto Bybit?

No. The pledged assets remain with ByCustody while their value is mirrored inside Bybit's trading environment, allowing clients to keep earning the fund's yield while accessing trading liquidity.

What happens next in the Franklin Templeton and Bybit collaboration?

The companies also plan a wallet-based tokenized wealth product on Bybit and the Mantle network. Bybit said further details will be announced separately.