Tokenized Finance Takes Flight as Big Banks Offer Yield and Liquidity in One Move

DBS Group has partnered with U.S. asset manager Franklin Templeton and blockchain firm Ripple to introduce tokenised money market fund and stablecoin-based trading and lending services for accredited and institutional investors. The collaboration aims to leverage blockchain technology to enhance efficiency and liquidity in global financial markets. Under the agreement, Franklin Templeton’s sgBENJI token—which represents the Franklin Onchain U.S. Dollar Short-Term Money Market Fund—will be listed on DBS Digital Exchange (DDEx) alongside Ripple’s RLUSD stablecoin, enabling eligible investors to swap between the two assets to earn yield.

The partnership marks a key step in merging traditional asset classes with digital infrastructure. DBS Digital Exchange CEO Lim Wee Kian emphasized that the initiative demonstrates how tokenised securities can enhance efficiency in financial systems while meeting the unique demands of a 24/7, borderless digital asset market. The sgBENJI token will be issued on Ripple’s XRP Ledger, chosen for its speed, efficiency, and low transaction costs, which are critical for high-volume, low-latency financial products like tokenised money market funds. Franklin Templeton highlighted that this collaboration represents a meaningful advancement in the utility of tokenised securities and a significant step forward in the development of Asia’s digital asset ecosystem.

DBS plans to further expand the initiative by allowing clients to use their sgBENJI tokens as collateral for credit through either repurchase agreements (repos) or third-party platforms. In such cases, DBS will act as an agent holding the collateral, giving clients access to broader liquidity pools while ensuring that their assets are managed under the oversight of a regulated institution. This feature will enable investors to maintain flexibility in their portfolios, particularly during periods of market volatility, by shifting between stablecoins and yield-generating tokens.

The collaboration reflects growing institutional interest in digital assets, with recent industry surveys indicating that approximately 87% of institutional investors plan to allocate to the asset class in 2025. Ripple’s RLUSD stablecoin is a key component of the offering, serving as a regulated, stable, and liquid medium of exchange. Nigel Khakoo, Ripple’s VP and Global Head of Trading and Markets, noted that enabling repo trades for tokenised money market funds backed by RLUSD provides a regulated mechanism that supports seamless transitions between stablecoins and yield-bearing assets.

Franklin Templeton’s digital assets team has emphasized the importance of blockchain and tokenisation in reshaping the global financial ecosystem. Roger Bayston, the firm’s Head of Digital Assets, described the partnership as a milestone in the development of tokenised securities and highlighted its potential to drive innovation in asset management and trading. The initiative aligns with broader industry trends, as more financial institutions explore ways to integrate blockchain technology into their operations and provide clients with more efficient and transparent financial solutions.