BounceBit, a crypto infrastructure provider that combines centralized and distributed finance (CEDEFI) capabilities, brings Franklin Templeton’s tokenized money market funds to structured yield platform BB Prime, combining the US Treasury Department with crypto funds and basic arbitrage strategies.
Tokenized funds belonging to the suite of Benji products serve as collateral and settlement instruments for investment strategies. In this way, investors can add additional sources of return while adding Treasury yields.
Tokenized Money Market Funds, which currently holds around $7 billion asset class, are at the forefront of tokenization efforts. Created by tokenization companies, BlackRock, a global asset manager, securitizes Buidl tokens, backed by short-term US government securities, and is increasingly accepted as collateral for exchanges. Meanwhile, New York Mellon Bank and Goldman Sachs recently launched tokenized money market funds as institutional investors.
Franklin Templeton, one of the earliest traditional asset managers to issue tokenized funds on public blockchains, launched the first tokenized US money market fund benji in 2021.
Bouncebit is working with FT to incorporate operational use of tokens in its active yield strategy, marking what Bouncebit CEO Jack Lu calls “the first real-world application of tokenized Treasury in an active yield strategy.”
“Affiliation with Wall Street Titans like Franklin Templeton means that facility-grade RWA products have moved beyond experimentation to scalable, usable infrastructure,” Lu said.
The launch will use BlackRock’s Buidl Token to be used to secure a Bitcoin derivatives strategy that, following Buncebit’s previous pilot, has produced returns of over 20% per year.
BB Prime is currently accepting pre-registration prior to public deployment.
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