Ripple, DBS, and Franklin Templeton Unveil $1.62 Trillion Tokenization
Key Takeaways:
- Ripple, DBS, and Franklin Templeton have signed an MoU to launch tokenized trading and lending solutions on the XRP Ledger.
- Accredited and institutional investors will be able to trade Franklin Templeton’s sgBENJI token on DBS Digital Exchange using Ripple’s RLUSD stablecoin.
- DBS will explore allowing sgBENJI to serve as collateral for credit, marking one of the most advanced use cases of tokenized money market funds to date.
Institutional demand for digital assets continues to accelerate, and three financial heavyweights: Ripple, DBS, and Franklin Templeton have joined forces to deliver a milestone in tokenization. Through a newly signed memorandum of understanding, the partners will bring tokenized money market funds and Ripple’s RLUSD stablecoin together on the XRP Ledger, offering investors real-world yield opportunities alongside blockchain efficiency.
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Trading and Lending Reimagined with Tokenized Funds
Traditionally, digital asset investors had two options: hold volatile tokens like Bitcoin or Ether, or park their funds in stablecoins that generate little to no yield. This partnership introduces a third path: on-chain money market funds that are stable, liquid, and yield-generating.
On DBS Digital Exchange (DDEx), eligible investors can now trade Ripple’s RLUSD directly for sgBENJI, Franklin Templeton’s tokenized version of its U.S. Dollar Short-Term Money Market Fund. The sgBENJI tokens are traded 24/7 as compared to the conventional money market instruments, which settle after normal business hours and settlement takes a matter of minutes.
This new format allows investors to re-allocate portfolios quickly in the turbulent markets without losing exposure to fixed assets and gaining yield.
Collateralizing sgBENJI: Unlocking Liquidity
In the next phase, DBS plans to explore repo-style lending arrangements using sgBENJI tokens as collateral. This means accredited clients may obtain credit directly from DBS or via third-party lending platforms, with DBS acting as a trusted agent holding the pledged collateral.
These mechanisms would allow wider liquidity pools among the investors and would also convince the lenders that their assets are held by a regulated bank. Effectually, digital markets have tokenized money market funds as not only instruments of credit creation but also investment vehicles.
The Significance of RLUSD
The initiative is based on Ripple RLUSD stablecoin, a stable cash that was introduced in late 2024 but provides a central position in between cash-like stability and earnings-bearing assets. Combining RLUSD and sgBENJI, Ripple will guarantee a smooth transition between a controlled stable medium of value and tokenized securities.
Nigel Khakoo, Ripple’s VP and Global Head of Trading and Markets, called the development a “game-changer,” noting that it provides institutional investors with real-world capital efficiency while keeping everything within a trusted ecosystem.
Building the Tokenization Ecosystem
Franklin Templeton has been leading in tokenization over several years, and the partnership increases its presence on the XRP Ledger, which is selected due to the speed, scalability, and low transaction costs. Franklin Templeton makes tokenized funds more accessible to the rest of the world by issuing sgBENJI on the XRP Ledger, which increases interoperability among various blockchains.
Roger Bayston, the Head of Digital Assets, Franklin Templeton, emphasized that with tokenization, new uses that would transform global finance are unlocked. Naturally, since Franklin Templeton operates with $1.62 trillion of assets globally as of July 2025, the relocation is an indication that significant asset managers consider blockchain to be at the heart of the future capital markets.
Read More: Binance and Franklin Templeton Join Forces on $1.6 Trillion Push into Tokenized Assets
Institutional Appetite for Digital Assets
This partnership arrives when the interest in crypto and tokenized assets is at historic highs in institutions. In a survey by EY-Parthenon and Coinbase, it was found that 87% of institutional investors will be investing in digital assets in the year 2025.
Lim Wee Kian is the CEO of DBS Digital Exchange who highlighted that the investors need products that reflect the fact of a 24-hour market across borders. Launching tokenized funds with stablecoins, DBS will become one of the center of the institutional-grade digital asset solutions in Asia.
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