DBS, Franklin Templeton and Ripple have signed a Memorandum of Understanding to establish repo markets powered by tokenized collateral and stablecoins.
Under the agreement, DBS Digital Exchange (DDEx) will list sgBENJI - the token of Franklin Templeton’s tokenised money market fund - alongside Ripple's stablecoin, RLUSD. With this setup, eligible DBS clients can trade RLUSD for sgBENJI tokens, enabling them to rebalance their portfolios within minutes, while earning yield during periods of volatility.
In the next phase of the partnership, DBS will explore helping clients unlock liquidity by using their sgBENJI tokens as collateral. Potential use cases include obtaining credit either from the bank via a repurchase transaction, or from third-party platforms where DBS will act as an agent holding the collateral. This gives clients access to wider liquidity pools while providing peace of mind that the pledged collateral is held with a trusted bank.
As part of the arrangement, Franklin Templeton will tokenise sgBENJI on the XRP Ledger alongside its existing line-up of blockchains, enabling greater accessibility across different chains and participants in the blockchain ecosystem.
Roger Bayston, head of digital assets at Franklin Templeton, says: “We believe that blockchain and tokenisation unlock powerful new use cases that have the potential to reshape the global financial ecosystem. Leveraging Franklin Templeton’s expertise in blockchain technologies and digital assets, we are excited to partner with DBS and Ripple to introduce cutting-edge trading and lending solutions for investors. This collaboration represents a meaningful advancement in the utility of tokenised securities and a significant step forward in the growth of Asia’s digital asset ecosystem.”