TLDR
- Ripple, DBS, and Franklin Templeton signed an MOU to launch tokenized trading and lending services on the XRP Ledger
- DBS Digital Exchange will list Franklin Templeton’s sgBENJI alongside Ripple’s RLUSD stablecoin
- Institutional investors can trade between yield-bearing tokens and stablecoins in real-time
- DBS will allow clients to use sgBENJI tokens as collateral for accessing liquidity
- The partnership aims to help investors manage volatility while earning returns in crypto markets
Ripple has announced a strategic partnership with DBS and Franklin Templeton to introduce innovative trading and lending services powered by its RLUSD stablecoin and tokenized money market funds. The collaboration was formalized through a memorandum of understanding signed in Singapore, marking a new chapter in institutional crypto offerings.
Under the agreement, DBS Digital Exchange (DDEx) will list Franklin Templeton’s tokenized money market product, sgBENJI, alongside Ripple’s RLUSD stablecoin. This arrangement enables accredited and institutional clients to trade between the yield-bearing token and the stablecoin in real time.
The partnership addresses one of the key challenges in digital asset investing: managing volatility without sacrificing yield. Investors can now easily rebalance their portfolios while earning returns during uncertain market cycles, providing a much-needed solution for institutional traders.
“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 tokenized securities can play that role while injecting greater efficiency and liquidity in global financial markets.”
Collateralized Lending Solutions
Beyond trading capabilities, the partnership will explore lending solutions that further enhance liquidity options for institutional clients. DBS will help clients use sgBENJI tokens as collateral to access credit through various mechanisms.
Clients can leverage these assets through repurchase agreements directly with the bank or through third-party lending platforms. In these arrangements, DBS would act as the custodian for the pledged sgBENJI tokens, ensuring security and compliance.
Franklin Templeton has committed to issuing sgBENJI on the XRP Ledger, citing its high throughput, low fees, and proven reliability. This choice enhances the interoperability of tokenized securities within the broader digital asset ecosystem.
The integration creates a seamless environment where investors can move between cash-like holdings and yield-bearing products without leaving the digital asset space. This capability is crucial for institutional investors who require both security and flexibility.
Market Context and Future Outlook
Ripple’s RLUSD stablecoin forms the foundation of this partnership. The launch follows Ripple’s broader strategy to position its stablecoin as a global settlement currency. Earlier this month, the company revealed plans to integrate RLUSD into African markets, targeting financial institutions seeking dollar-backed digital liquidity.
Nigel Khakoo, Ripple’s Global Head of Trading and Markets, expressed enthusiasm about the partnership’s potential. “Investors can seamlessly rebalance their portfolios between a stablecoin and a yield-generating money market fund, all within a single, trusted ecosystem, unlocking real-world capital efficiency, utility, and liquidity that institutions demand.”
The move comes as institutional demand for regulated, on-chain products continues to grow. According to a recent survey by Coinbase and EY-Parthenon, 87% of institutional investors expect to allocate funds to digital assets by 2025.
In a parallel development, VivoPower International’s EV subsidiary Tembo announced it will accept RLUSD for vehicle payments. This makes it one of the first automakers to embrace the stablecoin for commercial transactions.
The partnership represents a major advance in the tokenization of traditional assets. By combining DBS’s institutional banking expertise, Franklin Templeton’s asset management capabilities, and Ripple’s blockchain infrastructure, the alliance creates new pathways for institutional investors to manage risk and generate yield.
The Ripple-DBS-Franklin Templeton initiative launches as tokenized assets gain momentum in global capital markets. The partnership is expected to begin operations in the coming months, though specific timing details have not been announced.
