DBS and Franklin Templeton to Launch Tokenised Solutions with Ripple

DBS, Franklin Templeton, and Ripple to launch tokenised products on XRP Ledger.

DBS, Franklin Templeton, and Ripple have formed a partnership to launch trading and lending tokenised products based on the XRP Ledger blockchain and the RLUSD stablecoin.

The parties have signed a memorandum of understanding. The firms aim to simplify access to digital assets for institutional and accredited investors.

“They need solutions that can meet unique requirements, available 24/7 without restrictions. This partnership demonstrates how tokenised securities can play this role, while simultaneously enhancing the efficiency and liquidity of global financial markets,” said Lim Wee Kiak, CEO of DBS Digital Exchange.

The DBS Digital Exchange will list RLUSD alongside sgBENJI—a tokenised money market fund coin from Franklin Templeton (Franklin Onchain US Dollar Short-Term Money Market Fund).

Clients will be able to exchange these assets around the clock to rebalance portfolios during periods of volatility. A one-way transaction will take a few minutes.

In the next phase of the partnership, the trading platform will consider using sgBENJI to provide liquidity. An example of its application is obtaining a loan through a repurchase agreement, where DBS acts as an agent holding the collateral.

“This provides clients access to broader liquidity pools and gives clients and third-party lenders confidence that the collateral is held in a trusted bank,” the release stated.

To strengthen the tokenisation ecosystem, Franklin Templeton will integrate sgBENJI into the XRP Ledger. The publication noted that Ripple’s protocol was chosen “for its speed, efficiency, and low transaction costs.”

The main goal of the collaboration is to create a 24/7 global settlement network that reduces reliance on traditional banks with fixed operating hours.

“Blockchain and tokenisation open up new powerful opportunities that can transform the global financial ecosystem,” added Roger Bayston, Head of Digital Assets at Franklin Templeton.

In August, the U.S. Second Circuit Court of Appeals approved the settlement between the U.S. Securities and Exchange Commission and Ripple Labs, ending the legal battle that began in 2020.