In a groundbreaking move within the financial technology space, Ripple, Franklin Templeton, and DBS have inked a Memorandum of Understanding (MoU) to create a collaborative platform offering innovative trading and lending solutions. This partnership aims to leverage the strengths of tokenized money market funds on the XRP Ledger blockchain and Ripple’s stablecoin, Ripple USD (RLUSD), to transform the investment landscape.
A New Era of Tokenization
The agreement marks a significant milestone as Franklin Templeton steps into the world of blockchain by tokenizing its Franklin on-chain U.S. dollar short-term money market fund on the XRP Ledger. This move represents a pioneering effort to blend traditional financial instruments with cutting-edge blockchain technology.
The XRP Ledger, known for its scalability and enterprise-grade capabilities, will serve as the foundation for this ambitious project. By integrating with Ripple’s RLUSD, a stablecoin designed to maintain regulatory compliance and stability, the collaboration promises to offer a robust financial ecosystem for investors.
The Role of DBS Digital Exchange
DBS Digital Exchange (DDEx) will play a crucial role in this initiative by listing sgBENJI, the tokenized representation of the money market fund, alongside RLUSD. This listing will provide DBS clients with the flexibility to rebalance their portfolios seamlessly between a stablecoin and a yield-generating money market fund. Such a feature is particularly appealing in today’s volatile market, as it offers a stable yet lucrative investment avenue.
Lim Wee Kian, CEO of DBS Digital Exchange, emphasized the importance of this collaboration, stating, “This is evidence of how tokenized securities can enhance efficiency and liquidity in global financial markets.” His words underscore the potential of tokenized assets to revolutionize how traditional financial systems operate, injecting new levels of flexibility and accessibility.
Unlocking New Liquidity Options
Beyond mere trading opportunities, the partnership is set to offer innovative lending solutions. DBS is considering allowing holders of sgBENJI tokens to use their tokens as collateral to borrow funds, either from the bank itself or through third-party platforms. This feature will enable investors to unlock liquidity without losing exposure to the underlying yield-generating money market fund.
By facilitating access to credit through digital assets, the initiative aims to create a more dynamic and inclusive financial environment. Investors can leverage their holdings to obtain credit, which could be used for a variety of purposes, from personal investments to business expansion.
Industry Reactions and Implications
Nigel Khakoo, VP and Global Head of Trading and Markets at Ripple, hailed the collaboration as a “game-changer” in an email announcement shared with CoinDesk. “2025 has been marked by a series of industry-firsts when it comes to traditional financial institutions moving onchain,” Khakoo noted. “The linkup between Ripple, DBS, and Franklin Templeton to enable repo trades for a tokenized money market fund with a regulated, stable, and liquid mode of exchange, such as RLUSD, truly exemplifies this trend.”
The partnership is expected to resonate across the financial sector, showcasing the potential of blockchain technology to enhance capital efficiency, utility, and liquidity. By integrating traditional financial instruments with digital innovations, this collaboration sets a precedent for future endeavors in the fintech space.
Balancing Innovation with Caution
While the collaboration between Ripple, Franklin Templeton, and DBS is poised to usher in a new era of financial innovation, it’s important to acknowledge potential challenges. Regulatory compliance remains a key consideration, as the integration of blockchain and traditional finance must align with existing financial laws and guidelines.
Moreover, the security and stability of digital assets are paramount. As the industry evolves, maintaining investor confidence will depend on robust security measures and transparent operations. Stakeholders must remain vigilant to ensure the integrity of the ecosystem and protect investor interests.
Looking Ahead
As this landmark collaboration unfolds, the financial industry will be watching closely. The integration of tokenized money market funds and stablecoins represents a significant step toward a more interconnected and efficient financial system. By bridging the gap between traditional finance and blockchain technology, Ripple, Franklin Templeton, and DBS are paving the way for a future where digital assets and conventional investments coexist harmoniously.
In conclusion, this partnership not only highlights the transformative potential of blockchain technology but also underscores the importance of collaboration between established financial institutions and pioneering fintech companies. As the industry continues to evolve, such initiatives will play a crucial role in shaping the future of finance, offering new opportunities and challenges alike.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
