On Sept. 18, Ripple Labs, Franklin Templeton and DBS Group announced a strategic collaboration to develop tokenized trading and lending solutions leveraging the XRP Ledger. Under the memorandum of understanding, Franklin Templeton will convert its short-term U.S. dollar money market fund into a tokenized asset known as sgBENJI, using enterprise-grade smart contracts on the XRP Ledger blockchain.
DBS Digital Exchange (DDEx) will list sgBENJI alongside Ripple USD (RLUSD), the firm’s regulated stablecoin, enabling institutional clients to dynamically rebalance portfolios between yield-bearing tokens and a trusted digital dollar peg. The integration offers the promise of real-time settlement, deep liquidity pools and cost efficiencies compared to traditional repo markets.
Nigel Khakoo, Global Head of Trading and Markets at Ripple, described the partnership as a “game-changer for on-chain money markets.” He highlighted that tokenized money market assets can unlock new sources of capital efficiency, enabling repo transactions without the frictions of legacy infrastructures. Participants may also pledge sgBENJI as collateral for secured borrowing, broadening credit options for digital asset portfolios.
Lim Wee Kian, CEO of DBS Digital Exchange, asserted that the project exemplifies how regulated financial institutions can move high-grade securities on-chain. He noted that tokenized funds reduce settlement risk and support regulatory compliance through built-in auditability. The collaboration aims to test integration with custodial, compliance and reporting systems to meet institutional standards.
Market observers view the MoU as a landmark convergence of traditional finance and blockchain technology. It follows a trend of major asset managers experimenting with tokenized products to modernize fund distribution and settlement processes. If successful, the initiative could pave the way for broader tokenization of fixed-income instruments, including corporate and sovereign debt.
The venture will proceed through a proof-of-concept phase, exploring operational workflows, risk management and regulatory approvals. Pending favorable outcomes, the partners may extend the platform to additional fund families and collateral types. The development underscores the growing appetite among incumbents for programmable finance solutions that blend regulatory oversight with blockchain innovation.
Overall, the Ripple–Franklin Templeton–DBS alliance represents a significant step toward mainstream adoption of tokenized securities. By coupling money market fund assets with a stablecoin and institutional exchange, the collaboration seeks to deliver on-chain liquidity and yield opportunities for qualified investors, potentially reshaping the future of short-term funding markets.
Comments (0)