Tokenized Money Market Funds: How Ripple, DBS, and Franklin Templeton Are Revolutionizing Institutional Liquidity Management

The financial infrastructure is undergoing a seismic shift, driven by the convergence of blockchain technology and traditional asset classes. At the forefront of this transformation is Ripple's strategic alliance with DBS and Franklin Templeton, which is redefining how institutional investors manage liquidity and access yield. By tokenizing money market funds and integrating stablecoins into core financial operations, these partnerships are not just incremental improvements—they are foundational reimaginings of capital efficiency.

The sgBENJI Revolution: Bridging Stability and Yield

Franklin Templeton's tokenized U.S. Dollar Short-Term Money Market Fund (sgBENJI), built on Ripple's XRP Ledger, represents a breakthrough in asset programmability. Unlike traditional money market funds, which require days for settlement and are constrained by market hours, sgBENJI enables institutional and accredited investors to trade between the tokenized fund and RLUSD—a regulated, dollar-pegged stablecoin—on DBS Digital Exchange (DDEx) in real time Global Financial Infrastructure Entering a New Era^[1]. This 24/7 liquidity allows investors to dynamically rebalance portfolios in response to market volatility, a critical advantage in an era where macroeconomic shocks are increasingly frequent.

The XRP Ledger's speed and low transaction costs are pivotal here. As data from Ripple highlights, the platform processes transactions in seconds with negligible fees, making it ideal for high-volume, low-latency assets like tokenized money market funds Ripple partners with DBS and Franklin Templeton to launch^[3]. This efficiency is not just a technical achievement—it's a structural enabler for institutional adoption. By leveraging blockchain, Franklin Templeton and DBS are creating a frictionless bridge between cash-like stability (via RLUSD) and yield-generating assets (via sgBENJI), a duality that traditional finance has long struggled to reconcile Tokenized Ripple Fund: How Institutional Investors Are^[2].

Collateral Innovation: Expanding Liquidity Through Tokenized Assets

Beyond trading, the partnership is unlocking new avenues for liquidity management. DBS is actively exploring the use of sgBENJI tokens as collateral for repurchase agreements (repos), either directly with the bank or through third-party platforms where DBS acts as a custodian Global Financial Infrastructure Entering a New Era^[1]. This innovation addresses a critical pain point in institutional finance: the need for high-quality, liquid collateral to secure short-term credit.

Ripple's RLUSD stablecoin further enhances this ecosystem by serving as a regulated medium for repo transactions. According to Nigel Khakoo of Ripple, this approach “injects real-world capital efficiency and utility” into institutional workflows, reducing counterparty risk while accelerating settlement timelines Ripple partners with DBS and Franklin Templeton to launch^[3]. For context, traditional repo markets often rely on opaque or illiquid assets, but tokenized collateral offers transparency and instant verification—a paradigm shift that could democratize access to credit for a broader range of institutional players.

A Macro Trend: Tokenization as the New Financial Norm

The DBS-Franklin Templeton-Ripple collaboration is emblematic of a broader industry trend. A joint report by Ripple and Boston Consulting Group (BCG) projects that the tokenized real-world assets (RWA) market will balloon from $0.6 trillion today to $18.9 trillion by 2033 Global Financial Infrastructure Entering a New Era^[1]. This growth is fueled by institutional demand for programmable, interoperable assets that can be seamlessly integrated into existing financial systems.

Notably, 87% of institutional investors expect to allocate to digital assets in 2025, according to recent market surveys Global Financial Infrastructure Entering a New Era^[1]. This surge in demand is driven by the tangible benefits of tokenization: faster settlement, reduced operational costs, and enhanced transparency. For example, tokenized money market funds like sgBENJI eliminate the need for intermediaries in asset management, while RLUSD's stability mitigates the risks associated with volatile cryptocurrencies.

Strategic Implications for Institutional Investors

For institutional investors, the implications are profound. Tokenized money market funds offer a dual advantage: they provide the safety of cash equivalents while generating yields that outperform traditional short-term instruments. This is particularly valuable in a high-interest-rate environment, where cash hoarding becomes a liability. By enabling instant conversion between RLUSD and sgBENJI, Ripple and its partners are effectively creating a “yield switch” that allows investors to optimize returns without sacrificing liquidity Tokenized Ripple Fund: How Institutional Investors Are^[2].

Moreover, the integration of tokenized assets into repo markets expands the collateral base for credit, reducing reliance on traditional securities like government bonds. This diversification is critical as central banks tighten monetary policy and liquidity dries up. As one analyst noted, “Tokenized assets are the new liquidity buffer—programmable, verifiable, and globally accessible” Ripple partners with DBS and Franklin Templeton to launch^[3].

Conclusion: A New Era of Financial Infrastructure

The partnership between Ripple, DBS, and Franklin Templeton is not just a case study in innovation—it's a blueprint for the future of institutional finance. By tokenizing money market funds and leveraging stablecoins, these institutions are addressing long-standing inefficiencies in liquidity management, collateral utilization, and yield generation. The XRP Ledger's role in this ecosystem underscores the importance of blockchain infrastructure that is both scalable and cost-effective.

As the tokenized RWA market accelerates toward its projected $18.9 trillion valuation by 2033, early adopters will gain a significant competitive edge. For institutional investors, the message is clear: embracing tokenization is no longer optional—it's a strategic imperative. The question is no longer if this shift will happen, but how quickly the rest of the industry will follow.