Bybit, Franklin Templeton Partner to Tokenize Institutional Investing
The crypto exchange and the asset manager launch an off-exchange collateral program and tokenized yield strategies for wallet-based investors.
Bybit and Franklin Templeton have entered a strategic collaboration aimed at expanding access to tokenized investment products, the two firms announced from Dubai. The partnership represents one of the more prominent pairings between a major cryptocurrency exchange and a traditional asset management giant in recent memory.
The agreement launches with an off-exchange collateral program designed to unlock trading liquidity for institutional clients. By allowing eligible assets to serve as collateral without moving them onto an exchange, the structure is intended to reduce counterparty risk while keeping capital more efficiently deployed — a persistent concern among large institutional players operating in crypto markets.
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Beyond the collateral arrangement, the collaboration includes initiatives to bring tokenized wealth products and yield-generation strategies to investors operating through wallet-based infrastructure. The move signals a broader push to make financial instruments traditionally reserved for institutional or high-net-worth clients accessible through blockchain-native channels.
Franklin Templeton has been among the more active legacy asset managers exploring tokenization, and Bybit's global retail and institutional footprint offers a distribution channel that few traditional firms have tapped directly. Analysts have noted that off-exchange collateral programs and tokenized fund structures are increasingly seen as on-ramps for institutional capital into digital asset markets, rather than speculative trading tools.
The partnership underscores accelerating convergence between conventional finance and crypto infrastructure as regulatory frameworks in key markets gradually take shape. Continue reading at Cryptocurrency.
