BounceBit rolls out 0% credit layer for Franklin Templeton's BENJI

BounceBit's Borobudur lets BENJI holders borrow at 0% interest without selling their yield-generating positions.

BounceBit launched Borobudur, a credit layer offering 0% interest borrowing against Franklin Templeton's BENJI tokenized money market fund shares.

The rollout appeared in official announcements on Aug. 19, with BounceBit describing the feature as creating a "full capital cycle" that unifies credit access for tokenized assets. Wu Blockchain first reported the launch on Aug. 18.

BENJI represents shares of FOBXX, Franklin Templeton's regulated US government money market fund. The token launched in 2021 on Stellar and has since expanded to Avalanche, Polygon, Ethereum, and BNB Chain. BounceBit first integrated BENJI into its yielding strategies in August 2025, establishing the foundational relationship between the two platforms. The credit lines also extend to CeDeFi strategy positions within the BounceBit ecosystem, broadening the collateral base beyond just BENJI.

The zero-interest structure is effectively subsidized by the protocol as a growth incentive to attract assets and users. Credit is denominated in BB tokens, BounceBit's native asset, meaning the real cost of borrowing depends on BB price stability. The launch positions BounceBit as a bridge between traditional asset management and crypto-native credit markets.

How the credit layer works

Users hold BENJI positions that continue earning yield from the underlying government money market fund. Simultaneously, those same positions serve as collateral for BB-denominated credit lines carrying zero interest. The feature is delivered through BB Credit within BounceBit's portal.

Borobudur represents the next step in BounceBit's RWA strategy: not just letting users earn yield on tokenized traditional assets, but letting them extract additional utility from those positions through borrowing. The protocol describes this as a "full capital cycle" where the same asset simultaneously generates yield and secures credit.

The integration of CeDeFi strategy positions as additional collateral is notable. CeDeFi combines centralized finance with decentralized finance, merging the operating model of traditional financial services with blockchain-based on-chain trading and yield generation. By linking crypto-based strategies and tokenized money market fund assets within a single credit structure, BounceBit is expanding the ecosystem in which BB serves as the lending unit.

Capital efficiency and risk

In a standard scenario, an investor holding a money market fund position faces a binary choice: keep the position and earn yield, or sell it to free up capital for other opportunities. Borobudur eliminates that trade-off by letting the same dollar work in two places at once.

Using yield-bearing assets as collateral introduces correlation risk. Government money market funds are among the safest collateral types imaginable, but the crypto layer adds its own variables, including smart contract risk and BB token price volatility affecting the real value of borrowed funds.

The launch marks another step in the convergence of traditional finance and crypto credit markets. Franklin Templeton's BENJI has become a reference point for institutional tokenization, and BounceBit's integration of it into a lending framework could push other CeDeFi platforms to pursue similar structures. For BounceBit, the bet is that zero-interest credit denominated in BB will drive meaningful growth in protocol TVL and token utility.

This article is for informational purposes only and does not constitute investment advice.