Overview
- The partnership, announced Sept. 28, 2026, lets eligible institutional clients pledge BENJI tokens—each representing one share of the Franklin OnChain U.S. Government Money Fund—as off-exchange collateral to draw USDT or USDC credit lines on Bybit.
- Under the program the underlying fund shares remain held by a regulated custodian, ByCustody, while a mirror-mapping layer reflects their value inside Bybit so clients can trade without moving assets onto the exchange.
- The Franklin OnChain fund held about $686.64 million in net assets as of Aug. 31 and reported seven-day yields in the roughly 3.57% to 3.7% range, so pledged shares continue to earn yield while supporting trading credit.
- Key operational details remain undisclosed, including which institutions qualify, collateral haircuts, credit limits, fees and liquidation rules, leaving open questions about counterparty exposure and how losses would be handled.
- The Bybit link builds on earlier Benji integrations with Binance, OKX, MoonPay and Payward and follows SEC Division of Investment Management no-action relief in August 2026 that cleared a regulatory path for tokenized fund cash and collateral use.