DBS, Franklin Templeton, and Ripple Form New Partnership
DBS, Franklin Templeton, and Ripple have signed a memorandum of understanding (MoU). They will launch trading and lending solutions for accredited and institutional investors. These solutions use tokenized money market funds on the XRP Ledger and Ripple’s RLUSD stablecoin.
The partnership combines banking, asset management, and blockchain expertise. It aims to expand access to digital assets for institutional investors. This move comes as the digital asset market gains momentum. A report by EY-Parthenon and Coinbase shows 87% of institutional investors plan to invest in digital assets by 2025.
Trading and Yield Opportunities
Digital asset investors usually hold tokens like Bitcoin (BTC), Ether (ETH), and XRP. These tokens are volatile and do not generate yield. To address this, DBS Digital Exchange (DDEx) will list sgBENJI. This is Franklin Templeton’s token for its Onchain U.S. Dollar Short-Term Money Market Fund. DDEx will also list RLUSD.
Eligible DBS clients can trade RLUSD for sgBENJI tokens. This allows quick access to a stable, yield-generating asset 24/7.
DBS plans to let clients use sgBENJI tokens as collateral. Investors could access credit through repurchase agreements (repo) or third-party platforms. DBS will act as custodian of the collateral. This aims to increase liquidity while protecting client assets.
Benefits of the XRP Ledger
Franklin Templeton will issue sgBENJI on the XRP Ledger. This improves access across blockchains. The XRP Ledger offers fast transactions and low fees. These features suit tokenized money market funds that require quick trading and settlement at scale.
Lim Wee Kian, CEO of DBS Digital Exchange, said, “Digital asset investors need solutions that can meet the unique demands of a borderless 24/7 asset class. This partnership shows how tokenized securities can add efficiency and liquidity to global financial markets.”
Roger Bayston, Head of Digital Assets at Franklin Templeton, added, “Blockchain and tokenization unlock new use cases that can reshape the global financial ecosystem. This collaboration is a key step in growing Asia’s digital asset ecosystem.”
Nigel Khakoo, VP and Global Head of Trading and Markets at Ripple, called the initiative “a game-changer.” He said it lets investors rebalance between stablecoins and yield funds within one trusted ecosystem.
