Post
链研社lianyanshe
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Found the news about Binance's collaboration with Franklin Templeton on the Benji technology platform today. Strangely, there hasn’t been much reaction; it seems the market has underestimated the impact of this matter.
After the FTX incident, institutional investors are extremely sensitive about depositing assets into trading platforms. A lot of money has not entered the crypto world, such as the CME's contract positions and Bitcoin ETFs. Now this plan introduces Franklin Templeton's regulated framework, allowing assets to remain in banks/regulatory platforms, and credit in exchange trading resolves the counterparty risk that institutions are most concerned about. Multiple times more funds could potentially flow from traditional finance to crypto.
As BlackRock's BUIDL fund and Franklin's Benji platform continue to grow, institutions will convert more traditional cash into the crypto space. Binance is essentially seizing asset shares from banks and traditional brokerages.
There are similar examples in traditional finance, so there’s no need to worry about escalating risks. On Wall Street, when a hedge fund wants to borrow money from a bank for trading, they do not directly hand over government bonds to the bank, but instead give them to a third-party custodian bank. The custodian bank is responsible for verifying the collateral's value and managing risk. The collaboration between Binance and Franklin Templeton essentially reproduces this tri-party structure in the crypto world.
Moreover, top investment banks like Goldman Sachs and Morgan Stanley also allow large clients to use their held stocks and bonds as collateral for leveraged trading in various markets, giving Binance functionalities similar to those of traditional investment banks.
After the FTX incident, institutional investors are extremely sensitive about depositing assets into trading platforms. A lot of money has not entered the crypto world, such as the CME's contract positions and Bitcoin ETFs. Now this plan introduces Franklin Templeton's regulated framework, allowing assets to remain in banks/regulatory platforms, and credit in exchange trading resolves the counterparty risk that institutions are most concerned about. Multiple times more funds could potentially flow from traditional finance to crypto.
As BlackRock's BUIDL fund and Franklin's Benji platform continue to grow, institutions will convert more traditional cash into the crypto space. Binance is essentially seizing asset shares from banks and traditional brokerages.
There are similar examples in traditional finance, so there’s no need to worry about escalating risks. On Wall Street, when a hedge fund wants to borrow money from a bank for trading, they do not directly hand over government bonds to the bank, but instead give them to a third-party custodian bank. The custodian bank is responsible for verifying the collateral's value and managing risk. The collaboration between Binance and Franklin Templeton essentially reproduces this tri-party structure in the crypto world.
Moreover, top investment banks like Goldman Sachs and Morgan Stanley also allow large clients to use their held stocks and bonds as collateral for leveraged trading in various markets, giving Binance functionalities similar to those of traditional investment banks.