Singapore-based DBS Group has joined forces with crypto fintech Ripple and the U.S. asset manager Franklin Templeton to offer tokenized trading and lending services to accredited and institutional investors. The move targets growing demand from institutions for regulated, on-chain investment products.
DBS will build a digital exchange on Ripple’s XRP Ledger blockchain that will provide trading and lending services for tokenized money market funds and stablecoins. The trio signed a memorandum of understanding (MOU), marking one of the largest efforts to merge traditional money market funds with stablecoins and blockchain technology.
Singapore’s DBS Bank to Launch Digital Exchange to Trade Tokenized Money Market Funds and stablecoins
Under the agreement, DBS, Singapore’s biggest lender, will list Franklin Templeton’s sgBENJI token – a tokenized U.S. dollar short-term money market fund – alongside Ripple USD (RLUSD) stablecoin on the DBS Digital Exchange. The bank noted that this setup will enable investors to trade between sgBENJI and RLUSD at any time, and better manage volatility by rebalancing portfolios quickly and earning yields during uncertain market conditions.
DBS is also exploring plans to allow clients to use sgBENJI tokens as collateral for obtaining credit through the bank’s repurchase agreements (repo) or third-party lending platforms, where it would act as the collateral agent.
Franklin Templeton will issue sgBENJI on the XRP Ledger, which was chosen by the Wall Street giant for its high-speed settlement, low fees, and efficiency. The token can be traded using RLUSD on the DBS Digital Exchange.
RLUSD was launched by Ripple in December 2024 and has seen steady growth ever since. The dollar-backed stablecoin has achieved a market capitalization of $730 million, as of September 17.
The collaboration is seen as a significant step towards institutional adoption of blockchain-based financial products and services, with Ripple’s VP and Global Head of Trading and Markets, Nigel Khakoo, calling the effort a “game-changer”. He noted that enabling repo trades for a tokenized money market fund backed by RLUSD within a single, trusted ecosystem provides a regulated, stable, and liquid exchange mechanism that institutions demand.
87% of Institutional Investors Expected to Allocate Funds to Digital Assets in 2025
DBS, Franklin Templeton, Ripple’s plan to launch trading and lending of tokenized assets comes at a time when such products are gaining ground across global markets. According to a recent survey by Coinbase and EY-Parthenon, 87% of institutional investors expect to allocate their funds to digital assets by the end of 2025.
In a similar undertaking, on September 17, Japanese bank SBI Shinsei has partnered with DeCurret CDP and Singapore-based Partior to explore multicurrency tokenized deposits for cross-border settlements. The trio signed an MOU to develop a blockchain-based framework that would enable real-time clearing in multiple currencies 24/7 and reduce reliance on traditional correspondent banking.
DeCurret operates the DCJPY platform, which allows Japanese banks to issue yen-denominated tokenized deposits. SBI Shinsei plans to expand this facility beyond the Japanese yen, aiming to issue tokenized deposits in other major global currencies to meet the growing demand for faster international payments.
Partrior already has a multi-currency settlement infrastructure that is used by major financial institutions, including JPMorgan, DBS, Deutsche Bank, and Standard Chartered. Its platform, which supports the US dollar (USD), euros (EUR), and the Singapore dollar, will now include the Japanese yen (JPY) under the deal.
Global Central Banks Leverage Tokenized Assets to Bring TradFi to Digital Finance
Last year, the Bank for International Settlements (BIS) launched “Project Agora” in partnership with the U.S. Federal Reserve, the Bank of England, the Bank of Japan, Banque de France, Bank of Korea, Bank of Mexico, and Swiss National Bank. The initiative aims to connect tokenized commercial bank deposits with tokenized wholesale central bank money using a unified blockchain ledger to streamline global payments, reduce cross-border inefficiencies, and enable smart contract functionality to preserve the banking system.
In 2022, the Money Authority of Singapore (MAS) announced “Project Guardian”, an initiative focused on leveraging decentralized finance (DeFi) to facilitate secured borrowing and lending of tokenized assets on a public blockchain network. The central bank partnered with JPMorgan, DBS Bank, Deutsche Bank, Moody’s, and Marketnode for the infrastructure development and token issuance, while global regulators such as the UK’s Financial Conduct Authority (FCA), Switzerland’s Swiss Financial Market Supervisory Authority (FINMA), and Japan’s Financial Services Agency (FSA) joined in to oversee the large-scale, long-term project.
