Bybit and Franklin Templeton announced a strategic collaboration on September 28, 2026, designed to expand institutional and retail access to tokenized investment products. The partnership launches with an off-exchange collateral program enabling eligible institutional clients to pledge tokenized money market fund shares as trading collateral, while a separate wallet-based offering will bring Franklin Templeton investment strategies to retail investors on the Bybit exchange and Mantle chain.
- Bybit user base: 80 million users worldwide
- Franklin Templeton AUM: $1.7 trillion
- Collateral mechanism: Tokenized fund shares issued through Benji Technology Platform, held off-exchange via ByCustody custody
- Trading credit options: USDT or USDC lines available against pledged collateral
The first initiative allows institutional investors to use Franklin Templeton tokenized money market fund shares, issued through the firm’s proprietary Benji Technology Platform, as collateral for trading credit on Bybit. Eligible clients deposit shares through ByCustody, an institutional-grade custody platform, and receive access to USDT or USDC trading credit lines while the underlying assets remain held off-exchange. The value mirrors within Bybit‘s trading environment, allowing investors to continue earning yield on their holdings while accessing liquidity for 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. 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.
– Yoyee Wang, Global Head of RWA and TradFi, Bybit
The collaboration extends beyond institutional infrastructure to retail investors through a tokenized wealth product offering access to Franklin Templeton investment strategies. Bybit and Mantle will share additional details separately. Both firms plan to release educational content and digital programs to help wallet-based retail investors understand traditional investment concepts including 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. 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.
– Sandy Kaul, Head of Digital Assets and Innovation, Franklin Templeton
The partnership represents an initial phase of broader collaboration aimed at closing the distance between regulated investment management and on-chain markets. For institutions, the arrangement brings familiar collateral, custody, and capital efficiency standards from traditional finance into a digital asset trading environment. For retail investors, it provides professionally managed strategies alongside educational resources within the platforms where they already hold assets. Bybit operates as a digital asset trading and financial services platform serving 80 million users globally, while Franklin Templeton manages $1.7 trillion in assets under management.
Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton. Source: LinkedIn
