Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced a strategic collaboration with Franklin Templeton, a global investment manager with $1.7 trillion in assets under management, according to information shared with Finbold on September 28, 2026.
The partnership launches with an off-exchange collateral program giving institutional clients the ability to use tokenized money market fund shares as collateral when trading on Bybit.
Under the program, eligible investors can pledge fund shares issued through Franklin Templeton’s Benji Technology Platform via ByCustody, Bybit’s institutional-grade custody platform, to access Tether (USDT) or USD Coin USDC trading credit lines.
The underlying tokenized assets remain held off-exchange in custody while their value is mirrored within Bybit’s trading environment, allowing clients to continue earning yield on their holdings while supporting trading activity.
“As institutional adoption of digital assets accelerates, investors increasingly expect the same flexibility, capital efficiency, and risk management standards they are accustomed to in traditional markets,” said Yoyee Wang, Global Head of RWA and TradFi at Bybit. “By expanding the range of high-quality collateral available through our off-exchange infrastructure, we are helping clients deploy capital more effectively while maintaining exposure to trusted, regulated investment products.”
Collaboration extends to wallet-based investors with tokenized wealth product and education initiatives
The collaboration also reaches retail investors. A tokenized wealth product on the Bybit exchange and Mantle chain will provide wallet-based investors with access to Franklin Templeton investment strategies, with further details to be shared separately by Bybit and Mantle.
Bybit and Franklin Templeton will also release digital content programs and education initiatives to help retail investors explore traditional investment strategies and better understand concepts such as goals-based investing and diversification.
“Tokenization continues to reshape finance, and we’re excited to partner with Bybit to increase access to actively managed retail investment solutions that meet the evolving needs of the wallet ecosystem,” said Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton. “For institutions, extending connectivity of the Benji Technology Platform to Bybit offers a trusted venue to put regulated, yield-bearing assets to work in digital markets, and is a great example of how blockchain-integrated solutions can drive innovation and efficiency across markets.”
The two companies describe the initiatives as the start of a broader collaboration to close the gap between regulated investment management and on-chain markets, applying institutional-grade collateral, custody, and capital-efficiency standards in a digital asset trading environment.
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