Binance, the world’s largest cryptocurrency exchange, is working with crypto-friendly tradfi firm Franklin Templeton to offer an institutional off-exchange collateral program, making digital markets more secure and capital-efficient.

The new service allows eligible clients to use tokenized money market fund shares issued through Franklin Templeton’s Benji Technology Platform as off-exchange collateral to trade on Binance using Ceffu’s, the exchange’s partner custody layer.

The program alleviates a long-standing pain point for institutional traders by allowing them to use traditional, regulated, yield-bearing money market fund assets in digital markets without having to park them on an exchange, according to a press release.

The value of Benji-issued fund shares is reflected in Binance’s trading environment, while the tokenized assets themselves are securely held off-exchange in regulated custody. This reduces counterparty risk, letting institutional participants earn yield and support their trading activity without hedging on custody, liquidity, or regulatory protections, the firms said.

“Partnering with Franklin Templeton to offer tokenized real-world assets for off-exchange collateral settlement is a natural next step in our mission to bring digital assets and traditional finance closer together,” said Catherine Chen, Head of VIP & Institutional at Binance.