DBS, Ripple, and Franklin Templeton Launch Tokenized Trading and Lending for Institutions

In a major step toward modernizing institutional finance, Singapore’s DBS Bank has partnered with blockchain company Ripple and asset management firm Franklin Templeton. 

The goal of this alliance is to offer tokenized trading and lending services built on the XRP Ledger. The new offering allows institutional investors to trade between stablecoins and tokenized money market funds through a regulated platform that operates 24/7.

The initiative centers around two digital assets: Franklin Templeton’s sgBENJI token, which represents a tokenized version of its U.S. Dollar Short-Term Money Market Fund, and Ripple’s stablecoin RLUSD, which is backed by the U.S. dollar. These two tokens will be listed on the DBS Digital Exchange, also known as DDEx.

According to the official announcement, trades between RLUSD and sgBENJI will happen directly on the XRP Ledger. This blockchain was selected because of its low transaction fees and fast settlement speeds. 

The average settlement time on the network is about 3 to 5 seconds, and transaction fees are typically very low, often just a fraction of a cent. This makes it easier for institutions to carry out high-volume trades without paying large fees or waiting for delayed settlements.

Lim Wee Kian, CEO of DBS Digital Exchange, explained the value of the partnership. “Digital asset investors need solutions that can meet the unique demands of a borderless 24/7 asset class,” he said. “This partnership demonstrates how tokenized securities can play that role while injecting greater efficiency and liquidity in global financial markets.”

By combining a stablecoin with a yield-generating asset, the collaboration gives investors more flexibility. Those who want stability can hold RLUSD, while those seeking returns can choose sgBENJI. And because both assets exist on the same ledger, switching between them can be done quickly and easily.

Tokenized Lending Unlocks On-Chain Credit

After launching the trading feature, the next step in the partnership will be to offer lending services. DBS plans to let clients use sgBENJI as collateral to access credit. This means institutional investors will be able to borrow money without selling their assets. 

Instead, they can pledge their sgBENJI tokens and receive loans backed by the value of those tokens. There are a few ways this lending will work. In the first option, clients will enter into repurchase agreements, often called repos, with DBS itself. The bank will hold the sgBENJI tokens as collateral and provide liquidity according to risk-based parameters.

In the second option, loans will be provided by external institutional lenders. In this setup, DBS will serve as the collateral agent, holding and managing the pledged tokens on behalf of both parties. This method allows for credit access without transferring the tokens to the lender, adding a layer of security.

The third model involves activating credit lines directly on the XRP Ledger. This method does not require any conversion to fiat currency. Instead, smart contracts can be used to issue credit against sgBENJI tokens on-chain. This creates a faster and more streamlined process for accessing liquidity.

Using tokenized funds as collateral is expected to improve treasury operations and reduce the need for complicated banking processes. Institutions can move between stablecoins and money market funds in just a few steps. This helps in day-to-day financial management and offers more flexibility than traditional systems.

DBS has been active in blockchain innovation since 2021. In recent months, the bank has increased its efforts to launch new blockchain-based products. Last month, it announced that it would offer tokenized structured notes on Ethereum. The addition of tokenized lending based on sgBENJI and RLUSD is another step in DBS’s digital asset strategy.

Ripple’s Head of Trading and Markets, Nigel Khakoo, said the project offers a practical benefit to financial institutions. “This is a game-changer,” he said. “Linking tokenized money market funds with RLUSD makes digital assets more practical and useful. It creates a liquid and reliable system that institutions can use for their day-to-day needs.”

Strong Institutional Demand and Regulatory Focus

The partnership comes at a time when interest in regulated digital asset products is growing. A recent survey conducted by Coinbase and EY-Parthenon found that 87% of institutional investors plan to allocate funds to digital assets during 2025. 

This shows that there is strong confidence in blockchain-based finance, provided that the products meet regulatory standards.

Franklin Templeton’s Head of Digital Assets, Roger Bayston, believes tokenization will play a key role in the future of global finance. He noted that Asia is especially open to new blockchain technologies, with both investors and policymakers actively supporting innovation.

To support the project, all three companies, DBS, Franklin Templeton, and Ripple, have signed a Memorandum of Understanding (MoU). This agreement outlines how they plan to integrate stablecoins and tokenized money funds within a single ecosystem on the XRP Ledger.

Transparency and efficiency are major benefits of using a public blockchain like XRP Ledger. Trades between sgBENJI and RLUSD can be tracked in real time, and settlement happens in seconds. 

This level of visibility helps investors rebalance their portfolios quickly, even during volatile market conditions. It also helps auditors and regulators monitor transactions more easily.

However, the new system also brings potential risks that need to be addressed. For example, the lack of widespread asset segregation tools could pose challenges for custody and counterparty risk management. 

It’s also important to establish clear regulatory guidelines on how tokenized collateral is treated under capital and liquidity rules.

There are questions about the stability of Ripple’s RLUSD as well. While Ripple has promised more information about reserves, audits, and governance of the stablecoin, those details will need to be verified before the system gains widespread trust.

Another concern involves the system’s ability to operate 24/7. While constant availability is a major benefit, it also requires strong incident management protocols and the ability to handle reconciliation at any time. 

There is also the risk of relying too heavily on a single blockchain, which could limit the system’s flexibility and increase concentration risk.

Still, many institutions across Asia are moving in the same direction. Banks and fintech firms are launching pilot programs to test 24/7 settlement networks. These projects aim to reduce reliance on traditional banking systems and introduce more efficient ways to move money across borders.

DBS, Ripple, and Franklin Templeton’s initiative fits into this broader trend. By offering tokenized money market funds as collateral and enabling on-chain lending, the project helps move institutional finance closer to real-time, global operations.

The companies plan several next steps to bring this system to life. These include listing sgBENJI on the DBS Digital Exchange, enabling trading pairs with RLUSD, and extending the use of sgBENJI as collateral for various lending models. 

They also plan to release operational data such as trade volumes, settlement times, and transaction spreads to help validate the business model.

Lim Wee Kian believes the initiative highlights how blockchain can be used to improve the global financial system. “This partnership proves that tokenization can grow to become an integral part of global markets,” he said. “It combines financial experience with blockchain technology in a way that is secure, fast, and ready for institutional use.”

As the global financial system moves toward digital transformation, partnerships like this one show how blockchain can support regulated products that meet the needs of institutional investors. 

With tools like sgBENJI and RLUSD, institutions will be able to manage liquidity, trade assets, and unlock credit without being limited by the operating hours of traditional banks.

In doing so, they are helping to build a financial infrastructure that is not only faster and more efficient, but also open around the clock.