DBS Bank, Franklin Templeton, and Ripple have partnered to launch a tokenized money market fund and an RLUSD stablecoin-driven trading and lending solution, expanding institutional access to digital assets.

Executive Summary

DBS Bank, Franklin Templeton, and Ripple have formed a strategic partnership to introduce tokenized money market funds and a new stablecoin, RLUSD, for trading and lending solutions. This collaboration aims to provide accredited and institutional investors with enhanced access to digital assets and improve efficiency within traditional financial markets through blockchain technology.

The Event in Detail

The memorandum of understanding between DBS, Franklin Templeton, and Ripple focuses on establishing trading and lending products supported by tokenized money market funds on the XRP Ledger blockchain and stablecoins. A key component of this initiative is the listing of Franklin Templeton’s sgBENJI token, which represents the Franklin Onchain U.S. Dollar Short-Term Money Market Fund, on the DBS Digital Exchange (DDEx). This listing will occur alongside Ripple’s RLUSD stablecoin, allowing eligible DBS clients to trade between the two assets. The XRP Ledger was selected for its speed, efficiency, and low transaction costs, which are crucial for high-volume financial products.

Deconstructing Financial Mechanics

The partnership introduces sgBENJI, a tokenized representation of a money market fund, directly into a digital exchange environment. Institutional clients can swap RLUSD for sgBENJI to earn yield, offering a mechanism to rebalance portfolios into a relatively stable asset 24/7. Furthermore, DBS intends to explore the use of sgBENJI tokens as collateral for credit through bank repurchase agreements (repos) or third-party platforms. This collateralization feature enables investors to access broader liquidity pools. RLUSD, built on the XRP Ledger, functions as a regulated stablecoin for institutional use, facilitating collateral posting, trade settlement, and liquidity unlocking across blockchain platforms. Its design supports efficient trading and on-chain settlement without complex smart contracts, and it integrates with native XRP Ledger features like auto-bridging and the built-in decentralized exchange.

Business Strategy and Market Positioning

This initiative represents a significant move to merge traditional money market funds with blockchain and stablecoins, catering specifically to accredited and institutional investors. DBS aims to solidify its leadership in Asia’s blockchain ecosystem, providing trusted, institutional-grade solutions for digital asset portfolios. Franklin Templeton views the collaboration as a meaningful advancement in the utility of tokenized securities. Ripple is positioning RLUSD not only for these trading and lending solutions but also as a compliant, scalable solution to address pain points in the $685 billion global remittance market, offering faster, cheaper, and more transparent cross-border payments compared to traditional methods.

Broader Market Implications

The collaboration underscores a growing trend of institutional adoption of digital assets and Real-World Asset (RWA) tokenization. Investor interest is significant, with 87% of institutional investors reportedly expecting to invest in digital assets by 2025, and 76% planning to invest in tokenized assets by 2026, according to an EY-Parthenon and Coinbase report. The market for tokenized assets has expanded dramatically, from $85 million in 2020 to over $21 billion by April 2025. The overall stablecoin supply also surged 54% to $247 billion in 2025. This partnership could set a precedent for broader integration of blockchain technology into traditional finance, driving liquidity and innovation in tokenized assets and potentially enhancing the utility of Ripple's ecosystem.

Expert Commentary

Lim Wee Kian, Chief Executive Officer of DBS Digital Exchange, stated, >"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." Roger Bayston, Head of Digital Assets at Franklin Templeton, noted that blockchain and tokenization have the >"potential to reshape the global financial ecosystem."

Broader Context

This partnership aligns with a broader industry shift towards tokenized finance. Financial institutions such as BlackRock, Fidelity, and VanEck have launched tokenized money market funds. JPMorgan introduced its JPMD token for 24/7 settlement of B2B transfers and cross-border payments. Regional banks like HSBC and OCBC, along with DBS, have also issued tokenized bonds and structured notes to lower entry costs and expedite settlement. Nasdaq has also filed to enable tokenized ETF and equity trading. The rapid growth of tokenized funds, with assets under management increasing 7,400% in six months, is attributed to regulatory clarity and strong investor demand.