TL;DR
- Tokenized Trading: DBS will list sgBENJI, Franklin Templeton’s tokenized money market fund, enabling accredited investors to trade it 24/7 against Ripple’s RLUSD stablecoin for fast, yield-generating portfolio rebalancing.
- Collateral Utility: DBS plans to allow sgBENJI tokens to serve as collateral in repurchase agreements, unlocking institutional-grade credit access and liquidity through secure custody and third-party platforms.
- XRP Ledger Integration: Franklin Templeton selected the XRP Ledger for its speed, low fees, and reliability, making it ideal for tokenizing high-volume institutional assets like sgBENJI.
In a landmark collaboration, DBS Bank, Franklin Templeton, and Ripple have announced a strategic initiative to bring tokenized money market funds to institutional investors. The partnership will leverage Ripple’s RLUSD stablecoin and the XRP Ledger to enable seamless trading and lending solutions, marking a significant advancement in Asia’s digital asset ecosystem.
Tokenized Fund Meets Stablecoin Liquidity
DBS Digital Exchange (DDEx) will list sgBENJI, the tokenized representation of Franklin Templeton’s U.S. Dollar Short-Term Money Market Fund. This allows accredited investors to trade sgBENJI directly against Ripple’s RLUSD stablecoin. The pairing offers a 24/7 rebalancing mechanism, enabling investors to shift into a yield-generating, relatively stable asset during volatile market conditions. Unlike traditional money market funds, which settle over days, this blockchain-native setup completes trades within minutes.
Collateralization and Credit Access
The next phase of the partnership will explore using sgBENJI tokens as collateral for credit. DBS aims to facilitate repurchase agreements (repos) where clients can borrow cash by pledging sgBENJI, either directly with the bank or via third-party platforms. DBS would act as the collateral agent, ensuring secure custody and expanding access to liquidity pools. This model introduces institutional-grade capital efficiency and utility to the digital asset space.
XRP Ledger Chosen for Tokenization
Franklin Templeton will tokenize sgBENJI on the XRP Ledger, citing its speed, low transaction costs, and enterprise-grade reliability. This move enhances interoperability across blockchain networks and supports high-volume, low-latency transactions. The XRP Ledger’s efficiency aligns with the demands of institutional investors managing tokenized securities, reinforcing its role as a backbone for scalable financial infrastructure.
Institutional Momentum and Market Maturity
DBS, active in Asia’s blockchain ecosystem since 2021, views this partnership as a milestone in the maturation of digital assets. With 87% of institutional investors expected to allocate to digital assets in 2025, the collaboration reflects growing confidence in tokenized securities. Ripple’s RLUSD stablecoin and Franklin Templeton’s fund offer a trusted ecosystem for rebalancing portfolios and unlocking liquidity, reshaping how institutions engage with digital finance.
