Institutional Investors Get 24/7 Digital Yield With Tokenized Funds and Stablecoins

DBS Bank, in collaboration with Franklin Templeton and Ripple, has announced the listing of Franklin Templeton’s sgBENJI token and Ripple’s RLUSD stablecoin on DBS Digital Exchange (DDEx), marking a new phase in the integration of tokenised money market funds and stablecoins in institutional-grade trading and lending solutions. This initiative is designed to cater to accredited and institutional investors seeking efficient and regulated digital asset tools for portfolio management. The partnership aims to offer a 24/7 trading platform that allows investors to rebalance their assets between a yield-generating tokenised fund and a stablecoin-backed digital asset.

The sgBENJI token represents Franklin Templeton’s tokenised money market fund, the Franklin Onchain U.S. Dollar Short-Term Money Market Fund, which provides investors with a stable and liquid alternative to traditional portfolio allocations. Eligible DBS clients will be able to trade RLUSD, Ripple’s U.S. dollar-pegged stablecoin, for sgBENJI tokens, enabling them to shift into a relatively stable asset while earning yield in volatile market conditions. The tokenised fund is being issued on the XRP Ledger, a public and enterprise-grade blockchain known for its speed, efficiency, and low transaction costs. This move enhances interoperability across different blockchain networks, offering greater accessibility for institutional participants in the digital asset space.

Beyond trading, DBS is exploring the use of sgBENJI tokens as collateral for lending and liquidity solutions. Potential use cases include repurchase agreements (repos), where investors can pledge their tokens to secure credit from DBS or third-party platforms with DBS acting as a custodian. This approach provides investors with access to wider liquidity pools while ensuring the collateral remains under the custody of a regulated financial institution. The introduction of such services is expected to enhance capital efficiency and utility for institutional clients, aligning with the growing demand for flexible and secure financial instruments in digital markets.

The partnership underscores the increasing institutional interest in digital assets, particularly in the Asia-Pacific region. According to a survey by EY-Parthenon and Coinbase, 87% of institutional investors plan to allocate to digital assets in 2025, reflecting confidence in the sector’s maturation and regulatory progress. Franklin Templeton and Ripple emphasized that tokenisation and blockchain technologies are unlocking new use cases that could reshape global financial markets by improving efficiency and transparency.

DBS Digital Exchange CEO Lim Wee Kian highlighted that the initiative aligns with the bank’s strategy to provide institutional-grade digital asset solutions. He noted that the ability to trade tokenised securities and stablecoins seamlessly on a regulated platform is a significant development for global finance. Meanwhile, Franklin Templeton’s Head of Digital Assets, Roger Bayston, stated that the collaboration marks a meaningful advancement in the utility of tokenised securities and a step forward for Asia’s digital asset ecosystem. Ripple’s VP and Global Head of Trading and Markets, Nigel Khakoo, added that the integration of tokenised money market funds with stablecoins enhances the practicality of digital assets for institutional use.