Franklin Templeton and Binance have partnered to introduce an off-exchange collateral program for institutional investors. The initiative allows qualified clients to post tokenized cash-equivalent digital assets as collateral directly through Binance’s proprietary settlement infrastructure.

By settling collateral off the main exchange, the program reduces counterparty risk and operational steps in fund transactions. Franklin Templeton expects reduced settlement cycles and lower administrative costs for its institutional mutual fund trades.

This marks Franklin Templeton’s first foray into off-exchange digital collateral solutions, aligning with its broader digital asset strategy. The collaboration could enhance the firm’s competitiveness in institutional markets by offering faster, more efficient collateral management.