In a significant development for the financial and blockchain sectors, Ripple, Franklin Templeton, and DBS have formalized a collaboration through a newly signed Memorandum of Understanding (MOU) aimed at launching innovative trading and lending solutions. This partnership will leverage the capabilities of tokenized money market funds on the XRP Ledger blockchain, utilizing Ripple’s stablecoin, Ripple USD (RLUSD).
As part of this initiative, Franklin Templeton plans to tokenize its short-term money market fund, known as the Franklin on-chain U.S. dollar short-term money market fund, transforming it into a digital asset on the XRP Ledger. This public blockchain is designed to facilitate both enterprise-level and retail financial transactions, enhancing accessibility and efficiency in trading.
Simultaneously, the DBS Digital Exchange (DDEx) is set to list sgBENJI, the tokenized version of the money market fund, which will be available alongside Ripple USD. This strategic move aims to provide DBS clients with a unique opportunity to easily adjust their portfolios, allowing them to shift between a stablecoin and a yield-generating money market fund. Such an option could prove advantageous for investors, particularly in times of market volatility.
Nigel Khakoo, Vice President and Global Head of Trading and Markets at Ripple, emphasized the transformative potential of this partnership, dubbing it a “game-changer.” In a statement shared with CoinDesk, Khakoo noted, “The year 2025 has already seen a notable shift, with traditional financial institutions embracing blockchain technology. This synergistic relationship among Ripple, DBS, and Franklin Templeton is set to facilitate repo trades involving a tokenized money market fund, supported by a regulated, stable, and liquid exchange medium like RLUSD.”
Khakoo further explained that the collaboration would enable investors to seamlessly manage their portfolios within a single, trusted environment. This integration is anticipated to unlock significant efficiencies, utility, and liquidity crucial for institutional investors, affirming the growing role of digital assets in contemporary finance.
Lim Wee Kian, CEO of the DBS Digital Exchange, echoed Khakoo’s sentiments, highlighting the initiative as a milestone in showcasing how tokenized securities can enhance efficiency and liquidity within global financial markets. These advancements mark a pivotal progression for both traditional and digital realms of finance.
Beyond trading and portfolio management, DBS is actively pursuing additional functionalities for sgBENJI token holders. The bank is exploring options that would permit these holders to use their tokens as collateral for loans, either from DBS or through partnerships with third-party platforms. This additional capability is expected to provide an array of liquidity options for investors, allowing them to leverage their digital assets for credit while maintaining their engagement with the underlying, yield-generating money market fund.
This collaboration between Ripple, Franklin Templeton, and DBS stands as a clear indication of the rapidly evolving intersection between traditional finance and blockchain technology, and it may set the stage for more institutions to follow suit in adopting tokenized solutions. As the financial landscape continues to shift, this partnership may redefine how investors interact with both digital and fiat currencies, bridging the gap between two worlds.
