Tokenized trading and lending services arrive on the XRP Ledger for institutional investors
DBS, Franklin Templeton, and Ripple have entered into a strategic partnership to introduce tokenized trading and lending solutions built on the XRP Ledger. The initiative is designed to meet the growing demand from institutional investors for regulated, on-chain products that combine stability, efficiency, and liquidity.
Tokenized securities and stablecoin integration
Under a newly signed memorandum of understanding (MOU), the three firms will launch trading between Ripple USD (RLUSD) and sgBENJI, a tokenized version of Franklin Templeton’s U.S. Dollar Short-Term Money Market Fund. Both assets will be listed on DBS Digital Exchange (DDEx), allowing investors to seamlessly shift funds between a stablecoin and a tokenized money market fund.
Lim Wee Kian, CEO of DBS Digital Exchange, highlighted the importance of this innovation: “Digital asset investors need solutions that can meet the unique demands of a borderless 24/7 asset class. This partnership demonstrates how tokenized securities can inject greater efficiency and liquidity into global financial markets.”
Lending backed by tokenized funds
In the next phase, DBS plans to enable clients to use sgBENJI as collateral for credit, either through repurchase agreements with the bank or via third-party lending platforms, with DBS acting as the collateral agent. This marks one of the first moves to recognize tokenized money market funds as eligible collateral in institutional lending.
Ripple’s Nigel Khakoo described the initiative as a breakthrough: “Investors can now move between a stablecoin and a tokenized fund within a single, trusted ecosystem, unlocking real-world capital efficiency, utility, and liquidity that institutions demand.”
XRP Ledger chosen for tokenization
Franklin Templeton will issue sgBENJI directly on the XRP Ledger, selected for its low transaction costs and high-speed settlement. This infrastructure supports the growing trend of tokenized assets, which recently reached a market value of over $29 billion.
The collaboration comes at a time when institutional appetite for blockchain products is accelerating. A survey by Coinbase and EY-Parthenon revealed that 87% of institutional investors expect to allocate funds to digital assets by 2025.
By combining stablecoins, tokenized funds, and collateralized lending, DBS, Franklin Templeton, and Ripple are setting the stage for the next wave of institutional finance, offering solutions that blend traditional stability with blockchain efficiency.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.