DBS Group, Franklin Templeton and Ripple this week announced a deal to let accredited and institutional investors trade and lend using tokenised U.S. dollar money market funds and Ripple’s RLUSD stablecoin on DBS’s digital exchange in Singapore.
The partners will list Franklin Templeton’s sgBENJI token on the DBS Digital Exchange and issue the tokens on Ripple’s XRP Ledger so investors can swap between sgBENJI and RLUSD, earn yield and use the tokens in lending or repo arrangements.
New product on DBS Digital Exchange
Under the agreement, DBS will list sgBENJI, which is the tokenised unit of Franklin Templeton’s U.S. dollar money market fund. DBS said it will also offer trading against RLUSD, the Ripple stablecoin.
That setup will let qualified investors move between the two assets and collect yield from the positions they hold.
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How the tokens will work?
Franklin Templeton will mint the sgBENJI tokens on Ripple’s XRP Ledger. RLUSD will serve as the base trading currency for sgBENJI on the exchange. DBS said it plans to test ways for clients to use sgBENJI as collateral.
That could happen through bank-run repurchase deals or via third-party platforms where DBS would hold the pledged tokens as agent.
DBS plans to expand services
DBS said it will explore credit lines backed by sgBENJI. The bank will consider both on-balance-sheet options and arrangements where outside platforms provide financing while DBS safeguards the collateral.
DBS Digital Exchange CEO Lim Wee Kian said tokenised securities can add efficiency and lift liquidity in global markets. He said the move shows how banks and asset managers can work together on new on-chain products.
Market impact and commentary
Ripple’s RLUSD has grown quickly and now has a market cap of nearly $73 million.
Ripple executive Nigel Khakoo said enabling repo trades for a tokenised money market fund, using a stablecoin, could reshape short-term funding for digital assets.
He described the combination as a change that could open new funding options for institutional users.
Franklin Templeton’s broader moves
Franklin Templeton, which manages about US$1.4 trillion, will also extend its token efforts to other chains.
The firm has plans to use the Solana network for an on-chain mutual fund product. That step adds to interest from big asset managers in putting funds and token services on blockchains.
Other partnerships in the space
Ripple has also struck a deal with BBVA to provide custody technology. That tie-up supports BBVA’s new retail crypto service in Spain, which lets customers buy, sell and hold bitcoin and ether.
The DBS-Franklin Templeton-Ripple arrangement sits alongside these other partnerships as banks and asset managers test ways to move traditional finance tools on-chain.
Regulatory and operational questions remain
The firms will need to work through custody, settlement and credit rules. Using tokenised funds as collateral raises questions about valuation, legal rights and how repos would be executed if markets move fast. The partners said they will study these issues as they roll out the products to eligible clients.
Clients can expect trading and lending services on the DBS Digital Exchange for sgBENJI and RLUSD first.
If the pilot goes well, the bank may add credit features that let clients borrow against their token holdings. Third-party platforms could also play a role, with DBS acting as the agent that holds collateral.
The announcement marks another push by major financial firms to blend traditional money market tools with blockchain rails.
It also shows how stablecoins are being positioned as a base currency for tokenised securities trading. The coming months will reveal how quickly institutions adopt these new services and how regulators respond.