TLDR
- DBS Digital Exchange, Franklin Templeton, and Ripple signed a memorandum of understanding for tokenized trading and lending services
- DBS will list Franklin Templeton’s sgBENJI money market fund token alongside Ripple’s RLUSD stablecoin
- Institutional investors can swap between yield-generating assets and stablecoins in real-time on the XRP Ledger
- DBS plans to accept sgBENJI tokens as collateral for lending through repurchase agreements
- The partnership targets growing institutional demand for regulated blockchain-based financial products
DBS Digital Exchange has partnered with Franklin Templeton and Ripple to launch a tokenized trading and lending platform that combines money market funds with stablecoins. The collaboration brings traditional financial services to the XRP Ledger through an institutional-focused offering.
The partnership was formalized through a memorandum of understanding signed in Singapore. DBS will list Franklin Templeton’s sgBENJI token, which represents a tokenized version of the firm’s US Dollar Short-Term Money Market Fund.
sgBENJI will trade alongside Ripple’s RLUSD stablecoin on the DBS Digital Exchange. This pairing allows institutional clients to move between cash-equivalent holdings and yield-generating assets instantly.
The platform addresses a key challenge for crypto investors who want to earn returns during market volatility. Traditional digital asset holdings typically do not generate yield, making this solution attractive for institutional portfolios.
Lim Wee Kian, CEO of DBS Digital Exchange, said the partnership demonstrates how tokenized securities can provide efficiency and liquidity in global financial markets. The platform operates 24/7 to meet the demands of digital asset investing.
Lending Features Through Tokenized Collateral
The second phase will introduce lending capabilities using sgBENJI tokens as collateral. DBS plans to offer repurchase agreements directly through the bank or via third-party lending platforms.
DBS will serve as the collateral agent for these arrangements. This allows clients to unlock liquidity from their tokenized money market fund holdings without selling the underlying assets.
Franklin Templeton chose the XRP Ledger for sgBENJI issuance due to its low transaction costs and fast settlement times. The blockchain platform supports institutional-grade trading requirements.
Nigel Khakoo, Ripple’s Global Head of Trading and Markets, called the partnership a game-changer. He said it creates real-world capital efficiency and liquidity within a single trusted ecosystem.
Growing Institutional Crypto Adoption
The partnership responds to increasing institutional interest in regulated digital asset products. Recent survey data shows 87% of institutional investors expect to allocate funds to digital assets by 2025.
RLUSD serves as the primary settlement currency for the platform. The stablecoin enables seamless transitions between different asset types without traditional banking delays.
The collaboration follows other major developments in tokenized finance. SBI Shinsei Bank recently partnered with Singapore’s Partior to explore multicurrency tokenized deposits for cross-border payments.
VivoPower International’s EV subsidiary Tembo announced it will accept RLUSD payments for vehicle purchases. This makes it among the first automakers to integrate Ripple’s stablecoin.
The DBS partnership represents a step toward mainstream adoption of tokenized traditional assets. Financial institutions are increasingly exploring blockchain technology to improve settlement efficiency and reduce operational costs.
