Crypto exchanges race to accept tokenized money market fund collateral

Some leveraged crypto trading is now available to Canadians through a regulated platform. On September 2, Coinbase began offering futures to permitted Canadian clients, including institutional investors and qualified high-net-worth individuals, with leverage of up to 10x.

Client cash in a new role

In the Bybit structure, tokenized money market funds pledged as crypto collateral support trading credit lines. A holding normally used as a cash reserve stays tied to trading activity while it is pledged. Neither firm disclosed eligibility criteria, collateral haircuts or credit limits.

The collaboration also covers wallet-based investors. A tokenized wealth product on the Bybit exchange and the Mantle blockchain provides access to Franklin Templeton investment strategies; Bybit and Mantle will share details later. The firms also plan digital content and education programs on traditional investment strategies, goals-based investing and diversification.

“We’re excited to partner with Bybit to increase access to actively managed retail investment solutions that meet the evolving needs of the wallet ecosystem,” said Sandy Kaul, head of digital assets and innovation at Franklin Templeton.

She added that the arrangement gives institutions a regulated venue to deploy yield-bearing assets in digital markets.