DBS, Franklin Templeton and Ripple have entered into a strategic agreement to develop tokenized trading and lending services for institutional clients, using the XRP Ledger as the underlying blockchain. The collaboration is designed to give investors new ways to manage liquidity and hedge against market volatility through tokenized money market funds and stablecoins.
The three firms signed a memorandum of understanding to enable seamless movement between stablecoins and yield-bearing assets. According to Lim Wee Kian, CEO of DBS Digital Exchange, the initiative highlights how tokenized securities can enhance efficiency and liquidity in global markets.
As part of the rollout, DBS Digital Exchange will list sgBENJI, a tokenized version of Franklin Templeton’s US Dollar Short-Term Money Market Fund, alongside Ripple’s stablecoin, Ripple USD (RLUSD). This pairing allows clients to rebalance between RLUSD and sgBENJI at any time, earning yield while maintaining flexible access to capital.
Tokenized Funds as Collateral
DBS also revealed plans to let clients use sgBENJI as collateral for credit, either through repurchase agreements with the bank or via third-party lending platforms. DBS will act as the collateral agent in this process. Franklin Templeton will issue sgBENJI directly on the XRP Ledger, chosen for its low transaction costs and rapid settlement times.
Ripple executive Nigel Khakoo described the partnership as a “game-changer,” noting that institutions will gain a trusted ecosystem to move between stablecoins and tokenized funds, unlocking greater liquidity and capital efficiency.
The initiative comes at a time when institutional interest in digital assets is surging. A recent Coinbase and EY-Parthenon survey found that 87% of institutional investors plan to allocate funds to crypto by 2025.
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Broader Push Into Tokenized Finance
This move aligns with a global trend toward tokenization in traditional finance. Just recently, SBI Shinsei Bank partnered with Singapore-based Partior and Japan’s DeCurret DCP to test multicurrency tokenized deposits for cross-border settlements. Their joint effort aims to create a blockchain-based framework for real-time, multi-currency clearing.
With DBS, Franklin Templeton and Ripple now advancing tokenized lending on the XRP Ledger, the collaboration underscores how blockchain is reshaping capital markets and opening new opportunities for institutional investors worldwide.
