Franklin Templeton Partners With Bybit to Offer Tokenized Money Market Funds

San Francisco / Hong Kong, September 28, 2026. Franklin Templeton, the global asset manager overseeing $1.3 trillion in assets under management, has announced a strategic partnership with Bybit to distribute tokenized money market funds directly through blockchain infrastructure. The collaboration marks the first time a top-five global asset manager has formally routed institutional capital through a major cryptocurrency exchange settlement layer.

The partnership enables qualified institutional investors to access Franklin Templeton's tokenized money market fund products via Bybit's exchange infrastructure, with settlement processed on-chain. Bybit, which processes over $2 billion in daily perpetual futures volume, will provide custody and settlement services for institutional capital allocations. Launch timing targets Q1 2027, pending regulatory review.

The announcement arrives amid accelerating institutional blockchain adoption. Recent market analysis identifies a $2.1 to $2.4 trillion gap between institutional demand for tokenized assets and available settlement capacity. BlackRock's tokenized fund launch, targeting $50 to $200 billion in AUM, established comparable institutional precedent. Franklin Templeton's entry through a cryptocurrency exchange, rather than proprietary infrastructure, represents a notable shift in how legacy asset managers are approaching blockchain settlement.

Bybit's operational capacity supports the institutional use case. The exchange's derivatives infrastructure handles institutional-scale transaction volumes, and the partnership includes segregated custody accounts, third-party security audits, and insurance coverage aligned with institutional standards. The broader DeFi lending ecosystem has also matured: Morpho Protocol now holds $4.2 to $4.8 billion in total value locked, supporting tokenized collateral management at scale.

The regulatory environment has clarified sufficiently to support the partnership's structure. SEC frameworks for tokenized securities, developed through 2024 to 2026, provide legal pathways for registered asset managers to issue blockchain-native fund products. Vietnam's announced regulated cryptocurrency market, with regulatory finalization expected between Q4 2026 and Q2 2027, creates a supportive regional framework for Southeast Asian institutional expansion. Franklin Templeton has indicated proactive engagement with regulators across U.S., EU, and Asian jurisdictions.

Money market funds represent $4.3 trillion in global AUM. Prediction market ETFs reached $8.7 billion in AUM within six months of launch in 2026, illustrating the pace at which institutional capital has moved into blockchain-native product classes.

Key considerations for the partnership include Bybit's primary regulatory classification as a derivatives exchange, which differs from institutional custody standards applicable to money market fund administration. The SEC has not issued final guidance on cryptocurrency exchange custody for registered fund products, creating approval timeline uncertainty. Settlement layer fragmentation across blockchain networks adds operational complexity.

About Franklin Templeton

Franklin Templeton is a global investment management organization with $1.3 trillion in assets under management, operating across 30 countries. The firm has been an active participant in blockchain-based financial infrastructure since 2021, including its BENJI tokenized fund product launched on the Stellar and Polygon networks.

About Bybit

Bybit is a cryptocurrency derivatives and spot exchange founded in 2018, processing over $2 billion in daily perpetual futures volume. Bybit serves institutional and retail clients across more than 160 jurisdictions and has expanded its institutional services division to include custody, prime brokerage, and settlement infrastructure for professional market participants.