Franklin Templeton Backs Bybit Trading Collateral With Tokenized MMF Shares
Summary
- Franklin Templeton said it is offering an off-exchange collateral program that allows shares of a tokenized money market fund (MMF) to be used as collateral for trading on Bybit.
- Investors can borrow Tether (USDT) or USDC, Circle's U.S. dollar stablecoin, against tokenized MMF shares while continuing to retain the yield generated by the underlying assets.
- The shares are issued through Franklin Templeton's blockchain-based Benji Technology Platform and the firm also offers similar off-exchange collateral services on Binance and OKX.
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Franklin Templeton is offering an off-exchange collateral program that allows shares of a tokenized money market fund to be used as trading collateral on crypto exchange Bybit.
CoinDesk reported on September 28 that investors can borrow Tether's USDT or Circle's U.S. dollar stablecoin USDC against the tokenized MMF shares while continuing to earn the yield generated by the underlying assets. The fund has net assets of about $686 million.
The underlying assets are held off-exchange at ByCustody, a regulated custody platform. On Bybit, the value of those assets is recognized as trading collateral.
The shares are issued through Franklin Templeton's Benji Technology Platform, the firm's blockchain-based recordkeeping and transfer infrastructure. Franklin Templeton also offers similar off-exchange collateral services on Binance and OKX.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.