DBS Partners Franklin Templeton, Ripple for Tokenized Fund Trading

Singapore bank DBS has partnered with Franklin Templeton and Ripple to launch trading and lending solutions for institutional investors using tokenized money market funds and stablecoins on the XRP Ledger blockchain, according to a joint statement on Thursday.

The collaboration will enable eligible DBS clients to trade Ripple's RLUSD stablecoin for Franklin Templeton's sgBENJI tokens, which represent shares in the Franklin Onchain U.S. Dollar Short-Term Money Market Fund. The arrangement allows investors to earn yield while maintaining portfolio flexibility during market volatility, DBS said.

DBS Digital Exchange will list sgBENJI tokens alongside RLUSD, enabling clients to rebalance portfolios between stable assets and yield-generating instruments within minutes on a 24/7 basis. The setup addresses a common challenge for digital asset investors who typically hold volatile cryptocurrencies that generate no yield.

In the partnership's next phase, DBS will explore allowing clients to use sgBENJI tokens as collateral for credit facilities, either through direct bank lending via repurchase agreements or through third-party platforms where DBS acts as collateral agent.

Franklin Templeton will tokenize sgBENJI specifically on the XRP Ledger, adding to its existing blockchain portfolio. The company selected XRP Ledger for its speed, efficiency, and low transaction costs, positioning it as suitable for high-volume, low-latency money market fund operations.

"Digital asset investors need solutions that can meet the unique demands of a borderless 24/7 asset class," said Lim Wee Kian, CEO of DBS Digital Exchange. "This partnership demonstrates how tokenised securities can play that role while injecting greater efficiency and liquidity in global financial markets."

Roger Bayston, Franklin Templeton's head of digital assets, emphasized the collaboration's significance for Asia's digital asset ecosystem, describing it as "a meaningful advancement in the utility of tokenised securities."

Ripple's Nigel Khakoo called the arrangement "truly a game-changer" for enabling the first repo trade for a tokenized money market fund using a regulated stablecoin like RLUSD.

The collaboration represents growing convergence between traditional financial products and blockchain infrastructure, offering institutional investors familiar investment vehicles with the operational benefits of decentralized technology. However, the services will be limited to accredited and institutional investors meeting regulatory requirements.