Crypto-friendly institution Franklin Templeton brings its tokenized collateral service to Bybit
Franklin Templeton’s tokenized money market shares can be used as collateral for USDT or USDC trading credit lines on Bybit while earning yield on the underlying assets.
Digital asset-friendly financial institution Franklin Templeton is expanding its “off-exchange collateral program" to Bybit, allowing the exchange’s users to use shares in Franklin Templeton’s tokenized money market funds for crypto trading.
The partnership allows investors and wallet holders on the exchange to pledge shares, which represent about $686 million in net assets, as collateral to borrow stablecoins USDT or USDC while earning yield on the underlying assets, according to a press release on Monday.
The key point is that users will not have to move the underlying assets to Bybit. Instead, regulated custody platform ByCustody will hold the underlying assets off-exchange, with the value mirrored in Bybit's trading environment to enable yield generation while unlocking trading liquidity, the release said.
“So now I'm able to really look across the top exchanges and be able as an investor to use my collateral more optimally while earning yield on it,” Kaul said in an interview. “That to me is a critical unlock to really allow the ecosystem to grow. It's also a wonderful opportunity for us as an asset manager to be designing products specifically for this wallet-based investing channel.”