Franklin Templeton brings $687M tokenized fund to Bybit

The collaboration, announced September 28, enables a mirror-mapping structure where the value of tokenized fund shares is recognized on the trading platform without requiring the actual assets to leave secure custody. This setup allows eligible institutions to retain yield from the Franklin OnChain U.S. Government Money Fund, which reported a seven-day effective yield of 3.63% as of mid-September, while simultaneously deploying that capital for active trading.

Yoyee Wang, Bybit’s global head of RWA and TradFi, noted that the move reflects a growing demand for traditional risk controls within digital asset workflows. By maintaining the assets off-exchange, clients avoid the security risks associated with moving large holdings onto trading venues. This model mirrors previous initiatives by Franklin Templeton, which established similar collateral arrangements with Binance and other platforms earlier in 2026.

Looking beyond institutional credit, the two companies are developing a wallet-based wealth product integrated with the Mantle blockchain. While specific timelines and eligibility criteria remain undisclosed, the project signals a broader effort by the $1.83 trillion asset manager to embed regulated, yield-bearing products directly into decentralized wallet environments. This expansion follows recent regulatory progress, including SEC no-action relief that permits Franklin Templeton’s registered funds to utilize the Benji custody structure.