Franklin Templeton Launches Tokenized Collateral Service on Bybit

Tokenized Assets Power Credit on Bybit

Franklin Templeton, a global asset manager, has partnered with Bybit to offer tokenized money market shares as collateral for USDT and USDC trading credit lines, enabling users to earn yield while borrowing against the assets. The service integrates directly into Bybit’s platform, allowing seamless transactions for retail and institutional traders.

Franklin Templeton has teamed up with Bybit to let tokenized money market shares act as collateral. Traders can lock these shares to obtain USDT or USDC credit lines. The arrangement lets them earn yield on the underlying assets while borrowing. The firms say this bridges traditional finance and crypto trading. These shares are issued on a blockchain ledger, ensuring transparency and settlement speed. The partnership aims to simplify borrowing for both retail and institutional clients.

How Does Tokenized Collateral Change Trading?

Tokenized collateral lets traders borrow against assets they already own. They keep exposure to the fund’s yield while accessing leveraged positions. This dual benefit can attract more participants to Bybit. Analysts expect higher liquidity and lower risk for crypto loans. The service may also encourage other platforms to adopt similar structures. Borrowers can adjust their leverage ratios in real time through Bybit’s interface. This flexibility may increase trading volume on the platform.

Consequently, the partnership could expand the use of tokenized assets across the industry. It may set a precedent for using on‑chain securities as loan security. Overall, the move signals growing convergence between asset managers and crypto exchanges. Regulators are likely to monitor the practice as tokenized assets become more mainstream. If adoption grows, traditional asset managers may launch similar crypto‑linked products. The move could also reduce reliance on traditional collateral such as fiat deposits.

What assets can be used as collateral? Tokenized money market shares issued by Franklin Templeton are accepted. They can be pledged for USDT or USDC credit lines on Bybit.

Frequently Asked Questions

Do users have to sell their shares to get the loan? No. The shares remain held in the user’s wallet and continue earning yield while the loan is active.

When did the service launch? The collaboration was announced on September 28, 2026, and the service is expected to go live shortly thereafter.