Institutional Investors Get 24/7 Liquidity via Tokenized Cash and Stablecoin Swaps

DBS, Franklin Templeton, and Ripple have launched a groundbreaking initiative to provide institutional and accredited investors with tokenized trading and lending solutions, leveraging the XRP Ledger and stablecoins such as Ripple USD (RLUSD). The collaboration, formalized through a memorandum of understanding, aims to enhance the efficiency and liquidity of digital asset portfolios by offering real-time access to yield-generating instruments. This partnership marks a significant development in the maturation of the digital asset ecosystem, particularly as institutional interest in blockchain-based financial products continues to rise.

Under the new framework, DBS Digital Exchange (DDEx) will list Franklin Templeton’s tokenized money market fund, sgBENJI, alongside RLUSD. This allows clients to trade between the stablecoin and the tokenized fund at any time, enabling seamless rebalancing of portfolios during periods of market volatility. The integration of tokenized money market funds with stablecoins provides an innovative solution for investors to shift between assets quickly and with minimal friction, a critical advantage in a market that operates 24/7. Unlike traditional money market fund transactions, which can take days to settle, this setup allows for instant trades on a public blockchain, reducing delays and improving capital efficiency.

The partnership also explores the use of sgBENJI as collateral for obtaining credit. Clients can use the tokenized fund to secure short-term financing through repurchase agreements with DBS or third-party platforms, with DBS acting as a collateral agent. This approach expands liquidity options for investors while ensuring that the collateral is held with a trusted financial institution, thereby enhancing confidence among lenders and borrowers. The use of tokenized assets as collateral represents a growing trend in digital finance, driven by the need for faster and more transparent settlement mechanisms.

Franklin Templeton will tokenize the sgBENJI fund on the XRP Ledger, selected for its high-speed transactions, low costs, and scalability. This step strengthens the interoperability of tokenized securities across different blockchain networks, enabling broader accessibility for participants in the digital asset ecosystem. The XRP Ledger’s capabilities align well with the needs of institutional investors, who require high-volume, low-latency platforms to manage large portfolios effectively. By tokenizing its money market fund on a public blockchain, Franklin Templeton demonstrates its commitment to leveraging blockchain technology to reshape traditional financial infrastructure.

Industry leaders have highlighted the significance of this collaboration in advancing the adoption of tokenized assets. Lim Wee Kian, CEO of DBS Digital Exchange, emphasized that the partnership meets the unique demands of a borderless, 24/7 asset class, injecting greater efficiency and liquidity into global markets. Nigel Khakoo, VP and Global Head of Trading and Markets at Ripple, described the initiative as a “game-changer,” noting that it unlocks capital efficiency and real-world utility for institutional investors. Roger Bayston, Head of Digital Assets at Franklin Templeton, echoed these sentiments, stating that the partnership represents a meaningful advancement in the utility of tokenized securities.

This initiative aligns with broader trends in institutional finance, where the demand for regulated digital asset products is growing rapidly. A recent survey by EY-Parthenon and Coinbase found that 87% of institutional investors expect to allocate to digital assets in 2025. The introduction of tokenized money market funds and stablecoins on a trusted blockchain platform provides a regulated, liquid, and efficient alternative to traditional short-term cash instruments, addressing key pain points in the current financial system.