Ripple, DBS, and Franklin Templeton Roll Out Tokenized Trading and Lending on XRP Ledger
Ripple, DBS, and Franklin Templeton have partnered to offer a range of tokenized trading and lending services for institutional investors. Powered by the XRP Ledger (XRPL), the project seeks to transform global capital markets through a combination of tokenized money market funds and stablecoins.
Three firms signed a memorandum of understanding (MOU) to navigate market volatility in asset and wealth management. The collaboration offers enhanced liquidity, flexibility, and use of capital by allowing seamless transfer between stablecoins and yield-generating tokenized assets.
Tokenized Securities Enter the Spotlight
Lim Wee Kian, CEO of DBS Digital Exchange (DDEx), said this is a watershed moment:
“Investors in digital assets require solutions that can cater to the needs of a borderless 24/7 asset class. The tokenized securities strengthen liquidity and efficiency in the financial markets; a key partnership.”
As part of the agreement, DDEx will list Ripple USD (RLUSD) and sgBENJI — a tokenized version of Franklin Templeton’s U.S. Dollar Short-Term Money Market Fund. Investors will be able to swap RLUSD and sgBENJI in real time, rebalance their portfolios, and earn yields during turbulent markets.
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Unlocking Credit with Tokenized Assets
DBS intends to allow the use of sgBENJI as loan collateral during the next phase. Institutions can gain access to credit through a repo or third-party lending platform, with DBS as the collateral agent.
Franklin Templeton will launch sgBENJI directly on the XRP Ledger, benefiting from low fees, scalability, and quick settlement. Nigel Khakoo of Ripple called it a ‘gamechanger’, bringing together stablecoins and tokenized funds into one ecosystem that provides real utility and liquidity.
Institutional Demand Rising
Demand for on-chain financial products is increasing. A survey by Coinbase and EY-Parthenon states that 87% of institutional investors are keen to invest in digital assets by 2025. Similar patterns are seen globally. For example, SBI Shinsei Bank partnered with Partior and DeCurret to pilot multi-currency tokenized deposits for cross-border settlements, showing that tokenization is quickly being mainstreamed in finance.
