Franklin Resources announced the launch of an institutional off‑exchange collateral program with Binance, allowing eligible clients to use shares of its Benji‑issued tokenized money‑market funds as collateral for trading on Binance while the underlying assets remain in regulated custody through Ceffu.
The program enables tokenized shares to be posted as collateral on Binance’s platform, providing a 24/7, yield‑bearing option that reduces counterparty risk and eliminates the need to park assets on an exchange. Custody is handled by Ceffu, ensuring regulatory compliance and secure asset management.
The launch follows Franklin’s Q1 2026 earnings beat, driven by record long‑term inflows of $118.6 billion and an AUM of $1.68 trillion. The new program aligns with Franklin’s strategy to expand its tokenization platform and capture institutional demand for secure, liquid collateral in the growing digital‑asset market.
Roger Bayston, Head of Digital Assets, said the program “lets clients put their assets to work in regulated custody while safely earning yield in new ways” and that it is designed for the future of Benji and to deliver at scale with partners like Binance. CEO Jenny Johnson highlighted the record inflows and the company’s diversified global platform as key drivers of the quarter’s success.
The announcement was welcomed by investors, reflecting confidence in the partnership and Franklin’s broader digital‑asset strategy. Analysts noted the program as a natural next step in bridging traditional finance and crypto markets.
The program positions Franklin to tap a growing market for tokenized collateral, potentially generating new revenue streams and enhancing competitive positioning against peers such as BlackRock. The partnership also underscores regulatory compliance through Ceffu custody and addresses IOSCO concerns about cross‑border tokenized instruments.
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