Institutional Investors Gain 24/7 Digital Liquidity with Tokenized Money Market Funds

DBS Bank, Franklin Templeton, and Ripple have partnered to launch tokenized trading and lending solutions for institutional investors, leveraging tokenized money market funds and stablecoins on the XRP Ledger. The collaboration, formalized through a memorandum of understanding, aims to provide accredited investors with tools to manage digital asset portfolios more efficiently amid market volatility.

Under the partnership, DBS Digital Exchange (DDEx) will list Franklin Templeton’s sgBENJI token, which represents the Franklin Onchain U.S. Dollar Short-Term Money Market Fund, alongside Ripple’s RLUSD stablecoin. This allows eligible investors to trade between these assets 24/7, enabling rapid portfolio rebalancing and yield generation. The integration also reduces settlement times, as tokenized funds can be traded and settled within minutes compared to traditional methods that may take up to two business days.

The initiative extends to credit solutions, with DBS exploring the use of sgBENJI tokens as collateral for repurchase agreements (repos) or third-party lending platforms. This approach enhances liquidity while ensuring collateral is held by a trusted institution, offering institutional investors greater flexibility in accessing capital. Franklin Templeton will tokenize sgBENJI on the XRP Ledger, selected for its efficiency, low transaction costs, and high-speed processing, which aligns with the needs of institutional-grade digital asset portfolios.

The partnership reflects growing institutional interest in digital assets, with 87% of institutional investors expecting to allocate funds to the asset class by 2025, according to a report by EY-Parthenon and Coinbase. The move aligns with broader trends in tokenization, where financial institutions are increasingly exploring blockchain-based solutions to enhance market efficiency and liquidity.

Industry observers highlight that the initiative represents a milestone in the adoption of tokenized securities, particularly in Asia, where blockchain infrastructure is rapidly evolving. Lim Wee Kian, CEO of DBS Digital Exchange, emphasized the role of tokenized assets in meeting the demands of a 24/7, borderless asset class while injecting efficiency into global financial markets. Meanwhile, Nigel Khakoo, VP and Global Head of Trading and Markets at Ripple, described the initiative as a “game-changer,” enabling seamless transitions between stablecoins and yield-bearing assets within a trusted ecosystem.

The collaboration also underscores the strategic importance of interoperability in blockchain ecosystems. By tokenizing sgBENJI on the XRP Ledger, Franklin Templeton enhances cross-chain accessibility, enabling broader participation in the tokenized securities market. This aligns with broader efforts by financial institutions and regulators to standardize tokenization frameworks and improve cross-border payment efficiencies.

As the digital asset market matures, the use of tokenized money market funds and stablecoins may reshape how institutional investors manage liquidity and capital efficiency. The DBS-Franklin Templeton-Ripple initiative sets a precedent for future partnerships that aim to integrate traditional financial instruments with blockchain technologies, potentially expanding the scope of on-chain finance for institutional-grade applications.