Institutional Investors Get 24/7 Liquidity Boost via Ripple-DBS Tokenized Funds

Ripple, DBS, and Franklin Templeton have announced a partnership to offer institutional and accredited investors trading and lending solutions leveraging tokenized money market funds on the XRP Ledger and Ripple’s stablecoin, RLUSD. The collaboration involves listing Franklin Templeton’s sgBENJI token—a representation of its U.S. Dollar Short-Term Money Market Fund—alongside RLUSD on DBS Digital Exchange (DDEx). This allows clients to rebalance portfolios between stablecoins and yield-generating assets 24/7, enhancing liquidity and capital efficiency during volatile periods. DBS also plans to explore using sgBENJI tokens as collateral for credit through repurchase agreements or third-party platforms, expanding the utility of tokenized assetsDBS and Franklin Templeton to launch trading and lending solutions powered by tokenised money market funds and Ripples RLUSD stablecoin^[1].

The XRP Ledger’s inherent burn mechanism, where each transaction incurs a small XRP fee permanently removed from circulation, has gained renewed attention with RLUSD’s adoption. Ripple’s stablecoin, RLUSD, recently achieved $3 billion in monthly transaction volume, with each transfer contributing to XRP’s deflationary supply dynamics. At an average burn rate of 0.00001 XRP per transaction, the cumulative effect could amplify as RLUSD’s usage scales, potentially influencing XRP’s long-term value proposition. Analysts highlight that this mechanism, combined with the ledger’s speed and low costs, positions XRP as a critical infrastructure asset for institutional-grade tokenized finance.

Institutional interest in tokenized assets is surging, with 87% of institutional investors expecting to allocate to digital assets by 2025, according to a Coinbase and EY-Parthenon survey cited by DBS. The partnership aligns with this trend, offering a regulated framework for blending stablecoins with tokenized funds. By enabling instant settlement and yield generation, the model addresses traditional finance’s inefficiencies, such as multi-day fund settlement cycles. Franklin Templeton emphasized the XRP Ledger’s role in enhancing interoperability and accessibility, while Ripple’s VP Nigel Khakoo called the initiative a “game-changer” for on-chain capital efficiencyDBS and Franklin Templeton to launch trading and lending solutions powered by tokenised money market funds and Ripples RLUSD stablecoin^[1].

Regulatory developments further bolster confidence in the ecosystem. RLUSD, launched in late 2024 with New York DFS approval, operates within a compliant framework, easing institutional adoption. Ripple’s ongoing collaboration with regulators, including its role in shaping the U.S. CLARITY Act, underscores its position as a bridge between blockchain innovation and traditional finance. The partnership’s focus on regulated, transparent structures may set a precedent for broader tokenized asset adoption in global markets.

The XRP Ledger’s deflationary dynamics, coupled with growing institutional demand, could drive XRP’s price trajectory. While the burn rate remains modest—estimated at 0.0075% of total supply annually under high-volume scenarios—the token’s utility in cross-border payments and tokenized finance amplifies its demand-side fundamentals. As RLUSD’s transaction volume grows, the interplay between supply reduction and utility-driven adoption may create a self-reinforcing cycle, appealing to both retail and institutional investors.