BounceBit Introduces Borobudur Credit Layer for Franklin Templeton’s BENJI

BounceBit has launched Borobudur, a new credit infrastructure layer that allows holders of Franklin Templeton’s BENJI tokenized money market fund shares to access zero-interest credit lines without needing to liquidate their positions. This feature, available through BB Credit on BounceBit’s platform, enables users to leverage their yield-generating assets as collateral for borrowing, with transactions conducted in BounceBit’s native BB token.

BENJI represents shares of Franklin Templeton’s regulated U.S. government money market fund, formally known as FOBXX. The fund utilizes blockchain technology for transaction processing, marking a significant step in integrating traditional asset management with digital finance. The Borobudur system creates a 'full capital cycle,' allowing users to earn yield from their BENJI holdings while simultaneously using those assets to secure credit lines.

The development of Borobudur follows BounceBit's initial integration of BENJI into its yielding strategies in August 2025. The official announcement of the credit layer was made on August 19, 2026, highlighting the goal of enhancing credit access for tokenized assets. Franklin Templeton first launched the BENJI token in 2021, which has since expanded across multiple blockchains including Avalanche, Polygon, Ethereum, and BNB Chain.

The introduction of zero-interest credit lines aims to improve capital efficiency for investors, allowing them to utilize their money market fund positions without sacrificing yield. However, this structure carries inherent risks, including potential volatility in the value of collateral and the BB token, which could impact the overall stability of the credit system.

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Source: KLEA News