Bybit and Franklin Templeton have launched a program enabling institutional clients to use tokenized shares of money market funds issued on the Benji platform as collateral for credit lines in USDT or USDC, while the assets remain in off-exchange custody.

Yield Retention and Off-Exchange Custody

This arrangement gives investors access to leverage for trading on Bybit without selling fund shares or transferring assets to the exchange. Holders retain the yield from the money market funds while using them as collateral.

Tokenized Product Planned for Bybit and Mantle

Franklin Templeton and Bybit are also preparing a tokenized investment product for wallet users on Bybit and the Mantle network; details have not been disclosed.

Tokenized MMF Market Exceeds $9B by September 2025

Demand for tokenized money market funds is growing: according to the Bank for International Settlements, the market size exceeded $9 billion as of September 2025. Assets under management on the Benji platform were $1.98 billion in April, later declining to around $669 million, according to RWA.xyz.

Competition: BlackRock's BUIDL at $2.2B Already Accepted by Exchanges

The largest tokenized money market fund, the USD Institutional Digital Liquidity Fund (BUIDL) from BlackRock, has reached $2.2 billion and is already accepted as collateral on Crypto.com and Deribit, while Binance allows institutional clients to use BUIDL as off-exchange collateral.