In an exciting development for the financial technology sector, Ripple, Franklin Templeton, and DBS have formalized a partnership through a Memorandum of Understanding (MOU) aimed at launching innovative trading and lending solutions. This collaborative effort will utilize tokenized money market funds on the XRP Ledger blockchain alongside Ripple’s stablecoin, Ripple USD (RLUSD).
The initiative will see Franklin Templeton digitize its money market fund, specifically the Franklin On-Chain U.S. Dollar Short-Term Money Market Fund, using the XRP Ledger, recognized for its public and enterprise-grade capabilities. As part of this project, the DBS Digital Exchange (DDEx) intends to list the sgBENJI token, which represents the money market fund, alongside RLUSD. This strategic move will give DBS clients a unique opportunity to manage their portfolios more effectively, allowing for seamless transitions between a stablecoin and a yield-generating investment option even amid market fluctuations.
Nigel Khakoo, Vice President and Global Head of Trading and Markets at Ripple, described the partnership as transformative for the industry. He mentioned, “2025 has been marked by a series of industry-firsts when it comes to traditional financial institutions moving onchain, and the collaboration between Ripple, DBS, and Franklin Templeton to facilitate repurchase agreements for a tokenized money market fund with a stable and liquid exchange medium like RLUSD is indeed groundbreaking.”
Khakoo emphasized the advantages for investors, noting that they will be able to efficiently rebalance their portfolios within a trusted ecosystem. He stated that this enhances capital efficiency, utility, and liquidity—key parameters acknowledged widely in institutional finance.
Lim Wee Kian, Chief Executive Officer of DBS Digital Exchange, echoed these sentiments, highlighting the initiative as a demonstration of the potential for tokenized securities to enhance efficiency and liquidity in global financial markets. He articulated a belief that this collaboration could redefine how traditional investments function in the rapidly evolving digital marketplace.
Additionally, there is a forward-looking aspect to this partnership as DBS is exploring the possibility of allowing holders of sgBENJI tokens to use their holdings as collateral for borrowing purposes, either from the bank or third-party platforms. This potential move would create new liquidity avenues for investors, permitting them to leverage their digital assets while maintaining their exposure to the underlying yield-generating money market fund.
This groundbreaking partnership between Ripple, Franklin Templeton, and DBS represents a significant step toward integrating traditional finance with blockchain technology, potentially influencing the landscape of modern investment strategies. Stakeholders and investors alike are keenly watching to see how these developments will unfold and what implications they will have for the broader financial ecosystem as they become available.
