#What is Binance's New Product for Institutional Investors?
Binance and Franklin Templeton have introduced their inaugural product tailored for institutional investors, marking a significant collaboration in the financial sector. This innovative offering has been in development since September 2025 and centers around a unique off-exchange collateral framework. This framework permits institutional traders to utilize tokenized money market fund shares from Franklin Templeton’s Benji platform as trading collateral on Binance.
This model enables clients to retain their assets in a regulated custody environment, while generating yield and maintaining their trading capabilities. The team at Franklin Templeton emphasizes that this setup aligns with their vision for Benji and aids in delivering advanced solutions at scale.
How Does the Custody and Settlement Process Work?
Custody and settlement processes are managed by Ceffu, Binance's dedicated institutional custody arm. This arrangement allows assets to remain off-exchange in secure third-party custody. The market value of these assets can still be reflected within Binance’s trading system, enhancing operational efficiency.
According to Ceffu's leadership, this initiative aligns with the growing demand from institutional investors for trading models that prioritize strong risk management alongside efficient capital utilization. The structure is specifically crafted to minimize counterparty exposure and improve capital efficiency, appealing to those seeking yield-generating collateral in the cryptocurrency market.
Why Is This Partnership Significant?
The alliance between Binance and Franklin Templeton empowers them to provide tokenized real-world assets effectively for off-exchange collateral settlement. This represents an important step toward integrating digital assets with traditional financial markets. Furthermore, Franklin’s tokenized treasury fund, the Franklin OnChain U.S. Government Money Fund, currently ranks as one of the largest in the world, with approximately $896 million in total assets. This development signals a promising evolution in how institutional investors can engage with cryptocurrency and leverage traditional finance strategies for enhanced returns.