DBS and Franklin Templeton are joining forces with Ripple to offer accredited and institutional investors trading and lending services using tokenised money market funds and Ripple’s RLUSD stablecoin.
Under the plan, eligible DBS clients will be able to trade Franklin Templeton’s sgBENJI token on DBS Digital Exchange (DDEx) using RLUSD.
The sgBENJI token represents Franklin Templeton’s Franklin Onchain U.S. Dollar Short-Term Money Market Fund and will be added to the XRP Ledger, a public and enterprise-grade blockchain.
Franklin Templeton said using the XRP Ledger strengthens interoperability across networks and offers speed, efficiency and low transaction costs for a high-volume, low-latency asset like a tokenised money market fund.
DBS said the setup will help investors rebalance their portfolios between a regulated stablecoin and a yield-generating tokenised fund 24/7 and within minutes, allowing them to shift into a relatively stable asset and potentially earn yield during periods of market volatility.
In the next phase of the partnership, DBS plans to explore unlocking liquidity by allowing clients to use their sgBENJI tokens as collateral.
Potential use cases include obtaining credit either from the bank via a repurchase transaction (repo) or from third-party platforms where DBS will act as an agent holding the collateral, giving clients access to wider liquidity pools with their pledged assets kept under custody by a regulated bank.
Ripple’s RLUSD stablecoin is a regulated, stable and liquid mode of exchange, designed to improve settlement and liquidity when paired with tokenised securities.
“Digital asset investors need solutions that can meet the unique demands of a borderless 24/7 asset class. This partnership demonstrates how tokenised securities can play that role while injecting greater efficiency and liquidity in global financial markets.
Having been active in Asia’s blockchain ecosystem since 2021, this initiative strengthens our leadership position and represents a new front in DBS’ mission to provide our clients with trusted, institutional-grade solutions to build their digital asset portfolios.”
said Lim Wee Kian, CEO of DBS Digital Exchange.
“Leveraging Franklin Templeton’s expertise in blockchain technologies and digital assets, we are excited to partner with DBS and Ripple to introduce cutting-edge trading and lending solutions for investors.
This collaboration represents a meaningful advancement in the utility of tokenised securities and a significant step forward in the growth of Asia’s digital asset ecosystem,”
said Roger Bayston, Head of Digital Assets at Franklin Templeton.
Featured image: (From left) Rimy Gui, Head of Securities Services, Global Transaction Services, DBS; Evy Theunis, Head of Digital Assets, Institutional Banking Group, DBS; Lim Wee Kian, CEO, DBS Digital Exchange; Chetan Karkhanis, Senior Vice President, Strategic Ventures, Franklin Templeton; Nigel Khakoo, VP and Global Head of Trading and Markets, Ripple; Fiona Murray, Managing Director, APAC, Ripple.
