Binance and Franklin Templeton Launch Tokenized Collateral Program to Reduce Counterparty Risk
Binance and Franklin Templeton expand their collaboration to enable institutional investors to trade with off-exchange collateral, aiming to bolster safety and efficiency in digital asset markets.
Summary
Binance and Franklin Templeton announced a new service allowing institutional investors to trade on Binance while keeping collateral off-exchange, expanding their partnership launched in September 2024. The initiative leverages regulated custody solutions to minimize counterparty risk and improve capital efficiency for institutional participants in digital markets.
Terms & Concepts
- Off-Exchange Collateral: Assets held outside of an exchange, used to secure trading positions while minimizing custodial and counterparty risk.
- Tokenized Money Market Fund: A blockchain-based digital representation of shares in a fund that invests in short-term, low-risk debt securities, offering stable value and liquidity.