Binance and Franklin Templeton have launched a collateral program for institutions based on tokenized money market fund shares through the BENJI platform. This mechanism allows clients to use on-chain fund shares as collateral directly on Binance, helping to reduce the need for transferring funds between banks and exchanges, while optimizing capital management.
This is the first product within the cooperation framework announced by both parties last year, marking a tangible step forward in the tokenization of traditional assets within the cryptocurrency market. The fund value remains unchanged, but the recording and transfer of ownership become faster and more flexible.
Meanwhile, Cathie Wood (ARK Invest) expressed optimism about on-chain finance when joining the LayerZero advisory board, emphasizing the role of multi-chain infrastructure in the future of tokenization.
SEC Chairman Paul Atkins also commented that tokenization could shorten transaction settlement times to near real-time, reduce systemic risks, and improve market efficiency.
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