DBS Bank partners with Franklin Templeton, Ripple on tokenized finance services

DBS Bank teams up with Franklin Templeton and Ripple to list tokenized money market fund and stablecoin on DBS Digital Exchange.

DBS Bank is deepening its push into digital assets through a new partnership with Franklin Templeton and Ripple that will bring tokenized money market funds and stablecoin services to accredited and institutional investors.

In a statement on Sept. 18, cited by Reuters, Singapore’s largest lender confirmed it will list Franklin Templeton’s sgBENJI token, representing units of its tokenized U.S. dollar money market fund, on the DBS Digital Exchange.

The offering will be paired with Ripple’s U.S. dollar stablecoin, RLUSD, enabling investors to swap between the two and access yield opportunities.

Tokenized assets meet stablecoins

The setup allows for direct trading between a tokenized money market fund and a regulated stablecoin, a model DBS says could boost efficiency and liquidity in global markets. Franklin Templeton will issue the sgBENJI token on Ripple’s XRP Ledger, which has been chosen for its speed, cost-efficiency, and interoperability.

“This partnership demonstrates how tokenized securities can play that role while injecting greater efficiency and liquidity in global financial markets,” said Lim Wee Kian, chief executive officer of DBS Digital Exchange.

DBS also plans to expand the service by letting clients use sgBENJI tokens as collateral for credit. Options under consideration include bank-run repurchase transactions (repos) and third-party lending platforms where DBS would act as custodian of the pledged collateral.

Strategic context of DBS Bank initiative

The partnership comes as asset managers and banks step up their tokenization initiatives. Ripple has been establishing RLUSD as a link between institutional finance and blockchain-based payments, while Franklin Templeton, which oversees over $1.5 trillion in assets, has been aggressively growing its tokenized fund operations.

DBS is essentially piloting the first repo trades involving tokenized money market funds and regulated stablecoins by integrating sgBENJI with RLUSD. With projections indicating that tokenized assets could reach $16 trillion by 2030, the move reflects growing institutional confidence in tokenization.