DBS, Franklin Templeton and Ripple have signed a memorandum of understanding to introduce tokenised trading and lending products for institutional investors on the XRP Ledger. The initiative will use tokenised money market funds and stablecoins to provide a flexible way to shift assets during volatile market conditions.
According to the announcement, the project will allow investors to move funds between yield-generating assets and stablecoins, supporting round-the-clock rebalancing. Lim Wee Kian, CEO of DBS Digital Exchange, said tokenised securities offer «efficiency and liquidity» to global markets while catering to the demands of digital asset investors.
DBS Digital Exchange will list sgBENJI, a tokenised version of Franklin Templeton’s US Dollar Short-Term Money Market Fund, alongside Ripple USD (RLUSD). Investors will be able to trade between the two assets seamlessly, with future plans allowing sgBENJI to be used as collateral for credit through repurchase agreements or third-party lending platforms.
Franklin Templeton will issue sgBENJI on the XRP Ledger, chosen for its low transaction fees and fast settlement times. Ripple’s Nigel Khakoo called the collaboration a «game-changer» that enables capital efficiency and liquidity for institutions within a single trusted ecosystem.
The launch comes as tokenised assets gain momentum in global finance. A recent survey by Coinbase and EY-Parthenon showed that 87% of institutional investors plan to allocate funds to digital assets by 2025. In parallel, other banks and fintech firms are developing tokenised settlement systems to reduce reliance on traditional correspondent banking.
Kursiv also reports that the first US exchange-traded funds linked to XRP and Dogecoin have made a striking market debut, generating $54.7 mln in trading volume and leaving analyst forecasts in the dust.
