Franklin Templeton Launches Off-Exchange Collateral Program with Binance

Franklin Templeton announced that it has launched an institutional off-exchange collateral program with Binance. This program allows customers to use tokenized money market fund (MMF) shares as collateral for trading on Binance; the underlying assets continue to remain in regulated custody. According to Cointelegraph, the framework announced on Wednesday aims to reduce counterparty risk by preventing customer assets from being transferred to the exchange. Eligible institutions can pledge tokenized MMF shares issued through Franklin Templeton’s Benji Technology Platform as collateral; these shares are held off-exchange by Ceffu Custody, licensed in Dubai, while the collateral value is reflected on Binance.

Franklin Templeton and Binance Collaboration. Source: Franklin Templeton

How the Franklin Templeton-Binance Collateral Program Works

The model allows institutions to earn returns from regulated money market fund holdings while using the same assets for digital asset transactions and preserves existing custody and regulatory protections. Counterparty risk is minimized by not transferring assets to the exchange. This offers an innovative approach that combines the liquidity and yield opportunities of tokenized assets. Franklin Templeton Digital Assets Head Roger Bayston stated that the program is designed to offer new yield paths by keeping assets in regulated custody. The initiative builds on the strategic partnership between Binance and Franklin Templeton announced in 2025.

Similar Tokenization Models: Ondo OUSG and BlackRock BUIDL

Similar models include BlackRock’s BUIDL tokenized US Treasury fund, WisdomTree’s WTGXX and ONDO detailed analysis Ondo’s OUSG. Ondo’s OUSG fund provides similar liquidity and yield advantages as a tokenized product based on short-term US Treasury bills. However, regulators like IOSCO warn that cross-border tokenization structures may create supervisory gaps. These developments are accelerating the RWA (Real World Assets) tokenization trend.

ONDO Technical Analysis: Support and Resistance Levels

In this news context, ONDO futures are noteworthy. ONDO price is currently at $0.24 level, 24-hour change -%3.15. RSI at 31.05 is in oversold territory, trend is downward (Supertrend: Bearish, EMA 20: $0.2857). Strong supports: S1 $0.2018 (⭐ Strong, -%15.71 distance), S2 $0.2352 (⭐ Strong, -%1.75). Resistances: R1 $0.2592 (⭐ Strong, +%8.27), R2 $0.3943 (Medium). Tokenization news may support RWA projects like ONDO, but short-term bearish signals dominate.

Institutional Impacts and Risks of Tokenization

The program facilitates institutions in bridging traditional finance and crypto. Regulated custody increases trust, but regulator warnings emphasize the need for oversight. Such initiatives could expand the RWA sector in 2026.