Bybit has launched a new program allowing institutional investors to use tokenized shares from Franklin Templeton’s Benji platform as trading collateral. This arrangement enables clients to secure credit lines in USDT or USDC stablecoins while keeping their underlying assets in off-exchange custody.
The partnership allows institutions to maintain yield generation on their money market fund holdings while simultaneously financing crypto trading activities. Bybit and Franklin Templeton also intend to develop a tokenized investment product for wallet users on the Mantle network, though specific details remain undisclosed.
The market for tokenized money market funds has seen significant growth, with the Bank for International Settlements estimating its value at over $9 billion as of September 2025. Data from RWA.xyz indicates that the Benji platform currently manages approximately $669 million in assets.
Competitors in the space are also adopting similar strategies. BlackRock’s USD Institutional Digital Liquidity Fund, currently the largest tokenized money market fund with $2.2 billion in assets, is accepted as collateral by platforms including Crypto.com, Deribit, and Binance.
