Investors can use tokenized money market fund shares as collateral for stablecoin loans on Bybit.
Franklin Templeton is enhancing its off-exchange collateral program by introducing a service on the cryptocurrency exchange Bybit. This initiative allows users to leverage shares from Franklin Templeton's tokenized money market funds, which have a combined net asset value of approximately $686 million, as collateral to secure credit lines in stablecoins like USDT and USDC.
A key feature of this service is that investors do not need to transfer their assets to Bybit. Instead, the assets remain securely held off-exchange by ByCustody, while their value is reflected within Bybit's trading platform. This setup enables users to earn returns from their underlying investments while accessing liquidity for trading.
Sandy Kaul, Head of Digital Assets and Innovation at Franklin Templeton, highlighted that this service facilitates effective collateral utilization across multiple exchanges, allowing asset managers to develop tailored products for the wallet-based investment sector. Kaul noted, “This is essential for fostering growth in the ecosystem and presents a significant opportunity for us as asset managers.”
