- DBS Digital Exchange lists sgBENJI and RLUSD, enabling fast portfolio rebalancing.
- Plans are underway to explore collateralized lending using sgBENJI tokens for liquidity access.
- Franklin Templeton to issue sgBENJI on XRP Ledger for cross-chain accessibility.
DBS Group, Franklin Templeton, and Ripple signed a memorandum of understanding (MoU) in Singapore to launch trading and lending services using tokenized money market funds and Ripple’s RLUSD stablecoin. The collaboration brings institutional-grade finance onto the blockchain sector by combining regulated fund structures with stablecoin settlement on the XRP Ledger.
Tokenized Fund on DBS Digital Exchange
Under the agreement, DBS Digital Exchange will list Franklin Templeton’s sgBENJI token alongside Ripple’s RLUSD. The sgBENJI token represents Franklin Templeton’s tokenized U.S. Dollar Short-Term Money Market Fund, structured as a sub-fund of Franklin Templeton Investments VCC.
Eligible investors can exchange RLUSD for sgBENJI tokens, enabling them to rebalance between stablecoin liquidity and a yield-bearing fund. Unlike traditional fund settlements, which may take up to two business days, blockchain settlements are completed within minutes. According to DBS Digital Exchange CEO Lim Wee Kian, this setup allows clients to manage portfolios more efficiently during market volatility.
Ripple VP Nigel Khakoo explained that investors can move seamlessly between stablecoins and tokenized securities inside a single, trusted ecosystem. This arrangement combines liquidity, stability, and yield generation within one digital platform, reducing reliance on conventional settlement channels.
Expanding Collateral and Credit Options
The next phase will focus on collateralized lending using sgBENJI tokens. DBS stated that it will enable clients to pledge these tokens for credit access. This may include repurchase transactions directly with the bank or lending arrangements through third-party platforms, where DBS will act as custodian of the pledged assets.
Such structures extend liquidity options for investors while maintaining safeguards for lenders, since collateral is under the supervision of a regulated institution. Franklin Templeton Senior Vice President Chetan Karkhanis emphasized that tokenization can strengthen credit market efficiency by providing standardized, blockchain-native instruments.
By enabling collateral usage, the initiative connects tokenized assets with traditional short-term credit markets, widening access to liquidity for institutional participants. It also creates new applications for stablecoins in regulated banking environments, moving beyond simple payment functions.
Tokenization on the XRP Ledger
Franklin Templeton confirmed that sgBENJI will also be issued on the XRP Ledger to enhance interoperability across blockchain networks. The firm already supports multiple chains, and by adding XRP Ledger, it expands its reach for institutional participants.
The XRP Ledger was selected for its speed, efficiency, and low-cost transactions, making it suitable for managing high-volume money market fund operations. Ripple Managing Director Fiona Murray said that this infrastructure supports 24/7 trading and settlement, a key requirement for institutional-grade products.
According to Franklin Templeton’s Roger Bayston, tokenized securities can meet investor needs in borderless financial markets while retaining regulated oversight. This aligns with research from EY-Parthenon and Coinbase showing that 87 percent of institutional investors expect to allocate to digital assets in 2025.
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Tokenized funds distributed through bank exchanges introduce new competition to traditional distribution channels. Instead of relying on intermediaries, institutions can access regulated funds directly on exchanges.
The partnership brings together DBS’ banking framework, Franklin Templeton’s asset management expertise, and Ripple’s blockchain solutions. By integrating these components, the collaboration aims to improve fund distribution, liquidity management, and cross-border settlement processes for investors.
DBS, Franklin Templeton, and Ripple outlined a framework that merges stablecoins with tokenized money market funds. DBS Digital Exchange will allow investors to trade RLUSD and sgBENJI seamlessly, while future phases will introduce collateralized lending with tokenized instruments.
Franklin Templeton will issue sgBENJI on the XRP Ledger, enhancing cross-chain accessibility. Together, the institutions are creating new ways for institutional finance through blockchain-based settlement and regulated fund structures.
