Franklin Templeton’s tokenized money market fund collateral service expands to Bybit
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AT A GLANCE
Franklin Templeton reportedly expanded its tokenized fund share collateral service to Bybit, allowing users to borrow USDT or USDC。
Article
Franklin Templeton expands its tokenized collateral service to Bybit BlockBeats news,September 28, Franklin Templeton is expanding its “Over-the-Counter Collateral Program” to, allowing users of the trading platform to use their tokenized money market fund shares for crypto trading.
These shares represent approximately Bybit net assets and can be used as collateral to borrow 686000000 USD or USDT while the underlying assets continue generating returns. Users do not need to transfer the underlying assets to USDC. The regulated custody platform ByCustody will hold the underlying assets off-exchange, with their value mirrored in the Bybit trading environment to generate returns while unlocking trading liquidity.
Previously, Franklin Templeton had provided similar services to Bybit and Binance clients.
Original link OKX https://m.theblockbeats.info/flash/369377
Key points
01
BlockBeats reports that September 28, Franklin Templeton is expanding its “Over-the-Counter Collateral Program” to Bybit。
02
The service allows Bybit users to use tokenized money market fund shares for crypto trading.
03
The article says these fund shares represent approximately 686000000 USD in net assets and can be used as collateral to borrow USDT or USDC。
04
The article says the underlying assets can continue generating returns, and users do not need to transfer them to Bybit。
05
The regulated custody platform ByCustody will hold the underlying assets off-exchange, with their value mirrored in the Bybit trading environment.
06
The article says Franklin Templeton previously provided similar services to Binance and OKX clients.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Users can use tokenized money market fund shares as collateral to borrow USDT or USDC for trading. The underlying fund assets are held off-exchange by ByCustody, and Bybit displays their corresponding value. Therefore, the article says users do not need to transfer the underlying assets directly to the trading platform, while the assets can continue generating returns.
Why it matters to readers
This gives Bybit users an additional collateral option and connects tokenized funds, over-the-counter custody, and crypto trading. For users, the key question is whether they can obtain trading liquidity while retaining the returns from the underlying assets.
Beginners can understand this as “using fund shares as collateral to borrow stablecoins.” However, collateralized lending may still involve valuation, liquidation, custody, and platform rules; it does not mean risk-free returns.
Risks and unknowns
The evidence only presents BlockBeats’ account and does not include direct announcements from Franklin Templeton,Bybit or ByCustody.
The service’s actual launch date, supported regions, eligibility requirements, and fees are not specified in the evidence.
The collateral ratio, valuation methodology, liquidation rules, and specific custody terms are not specified in the evidence.
Approximately 686000000 USD represents the net assets of the relevant shares; the evidence does not specify how much of this will actually be used for Bybit collateral or borrowing.
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Related concepts
Tokenized money market funds
This term is not in the glossary yet. Browse related concepts in the glossary.
An asset provided by a counterparty to guard against potential losses, which may be liquidated in the event of default to compensate the lender for its loss.
