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BounceBit has rolled out Borobudur, a credit infrastructure layer that lets holders of Franklin Templeton’s BENJI tokenized money market fund shares access zero-interest credit lines without liquidating their positions. The feature, delivered through BB Credit within BounceBit’s portal, effectively turns yield-bearing assets into collateral for borrowing, all denominated in BounceBit’s native BB token.
How the credit layer works
BENJI represents shares of Franklin Templeton’s regulated US government money market fund, known formally as FOBXX. The fund uses blockchain technology for transaction processing, making it one of the earliest examples of a major asset manager putting real-world fund infrastructure on-chain.
Borobudur creates what BounceBit describes as a “full capital cycle.” 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 credit lines also extend to CeDeFi strategy positions within the BounceBit ecosystem, broadening the range of assets that can serve as collateral beyond just BENJI.
A year in the making
This launch didn’t materialize overnight. BounceBit first integrated BENJI into its yielding strategies back in August 2025, establishing the foundational relationship between the two platforms. Borobudur represents the next logical step: not just letting users earn yield on tokenized traditional assets, but letting them extract additional utility from those positions through borrowing.
The formal rollout appeared in official announcements on August 19, 2026, with BounceBit emphasizing the unification of credit access for tokenized assets.
Franklin Templeton launched its BENJI token in 2021, representing its Franklin OnChain U.S. Government Money Fund (FOBXX). Initially launched on the Stellar blockchain, the token has since seen expansion to multiple blockchains including Avalanche, Polygon, Ethereum, and BNB Chain.
Capital efficiency as the competitive edge
The core value proposition here is capital efficiency. 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.
The zero-interest structure raises an obvious question: where’s the catch? The credit is denominated in BB tokens, BounceBit’s native asset. That means the borrowing cost is effectively subsidized by the protocol, likely as a growth incentive to attract assets and users to the platform.
Using yield-bearing assets as collateral introduces correlation risk: if the value of the collateral drops or the underlying fund experiences redemption pressure, the credit structure faces stress. Government money market funds are among the safest collateral types imaginable, but the crypto layer on top adds its own variables, including smart contract risk and BB token price volatility affecting the real value of borrowed funds.
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