Binance Launches Institutional Off-Exchange Collateral Program

TLDR

• Binance partners with Franklin Templeton for collateral program.
• Tokenized MMF shares used as collateral on Binance platform.
• Ceffu provides custody for off-exchange trading assets.

Binance has partnered with Franklin Templeton to launch an institutional off-exchange collateral program. This program uses tokenized money market fund (MMF) shares from Franklin Templeton’s Benji Technology Platform as collateral for trading on Binance. Ceffu, Binance’s institutional crypto-native custody partner, will support custody in this initiative.

This strategic collaboration involves three main participants: Binance, Franklin Templeton, and Ceffu. Binance is the world’s largest cryptocurrency exchange by trading volume. Franklin Templeton is a global investment manager and a pioneer in digital asset investing since 2018. Ceffu handles off-exchange custody and settlement to reduce counterparty risk.

Details of the Tokenized Collateral Program

The tokenized collateral program allows institutions to use tokenized MMF shares as collateral on Binance’s platform. The shares are provided by Franklin Templeton’s Benji Technology Platform. Ceffu supports the custody of these assets, ensuring they remain secure while off-exchange.

Institutions can now trade on Binance without needing to park assets on the exchange, thanks to mirrored asset values. The initiative aims to balance risk management and capital efficiency for institutional clients.

Strategic Partnership Background

This partnership expands on a collaboration that began in September 2025. Franklin Templeton has been integrating blockchain and data science into its asset solutions since 2018. This new program reflects a natural progression of their digital asset initiatives.

Catherine Chen, Head of VIP & Institutional at Binance, noted the significance of this development.

“Partnering with Franklin Templeton to offer tokenized real-world assets for off-exchange collateral settlement is a natural next step in our mission.”

Catherine Chen, Binance

Addressing Institutional Trading Needs

The program also responds to institutional trading needs. Ian Loh, CEO of Ceffu, emphasized the trading models his clients require.

“Institutions increasingly require trading models that prioritize risk management without sacrificing capital efficiency.”

Ian Loh, Ceffu

No specific funding amounts or grants were disclosed for the program. It primarily deals with yield-bearing collateral through tokenized MMF shares. No direct mentions of major cryptocurrencies like ETH, BTC, or specific altcoins were made.

Support Without Mentioned Governance Tokens

The program does not involve governance tokens or specific DeFi protocols. The initiative focuses on broader institutional trading through tokenized MMF shares. These are the only assets explicitly listed in the announcements.

No changes in regulatory or institutional policies by authorities like SEC, CFTC, or ESMA are mentioned in relation to this new program. The focus remains sharply on the institutional custodial and trading utility.

For further details on recent industry updates, check the latest updates and news from the cryptocurrency sector.