According to CoinMeta, Bybit announced a strategic partnership with Franklin Templeton, allowing institutional traders to use tokenized fund shares as collateral without the need to deposit these assets directly into an exchange. The collaboration was launched on September 28th and aims to provide eligible institutional clients with a new way of using collateral. Participants can hold qualified tokenized fund shares through supported custodian structures and pledge them for trading activities on Bybit. This approach can reduce counterparty risk while allowing the collateral to continue to generate returns related to the underlying currency market funds. Bybit gains value from the collateral through this structure, without requiring institutions to convert the entire position into cash or stablecoins.