DBS, Franklin Templeton and Ripple are launching tokenized lending and trading on the XRP Ledger, enabling institutions to swap stablecoins and tokenized money‑market funds (sgBENJI) 24/7, use sgBENJI as collateral, and access faster settlement with lower fees.
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Instant, low‑cost on‑chain trading
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sgBENJI (tokenized money market fund) and Ripple USD (RLUSD) tradable round‑the‑clock
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Supports collateralized credit, repurchase agreements and institutional liquidity needs
Tokenized lending on the XRP Ledger: institutions can trade RLUSD and sgBENJI 24/7, use sgBENJI as collateral, and access on‑chain yield opportunities. Read how to participate.
What is tokenized lending on the XRP Ledger?
Tokenized lending on the XRP Ledger is the creation of on‑chain versions of money‑market funds and stablecoins that can be traded, used as collateral, and lent in a 24/7 blockchain environment. Institutions can move liquidity instantly between a yield‑bearing token (sgBENJI) and a stablecoin (RLUSD) to manage volatility and funding needs.
How will DBS, Franklin Templeton and Ripple enable tokenized trading and lending?
The partners signed a memorandum of understanding to list Franklin Templeton’s sgBENJI on the XRP Ledger and pair it with Ripple USD (RLUSD) on DBS Digital Exchange (DDEx). This enables continuous trading and instant settlement with low fees, while DBS plans to accept sgBENJI as collateral for credit via repurchase agreements or third‑party lending platforms.
Ripple partners with DBS and Franklin to roll out tokenized lending. Source: Ripple
DBS Digital Exchange will list sgBENJI, a tokenized version of Franklin Templeton’s US Dollar Short‑Term Money Market Fund, alongside RLUSD. Clients can trade between RLUSD and sgBENJI at any time, enabling rapid portfolio rebalancing and continuous access to yield during volatile markets.
Lim Wee Kian, CEO of DBS Digital Exchange, said, “Digital asset investors need solutions that can meet the unique demands of a borderless 24/7 asset class. This partnership demonstrates how tokenized securities can play that role while injecting greater efficiency and liquidity in global financial markets.”
Why does using sgBENJI as collateral matter?
Accepting sgBENJI as collateral unlocks credit lines and repurchase agreement structures for institutional clients, increasing capital efficiency. DBS intends to act as collateral agent, facilitating loans and margining with an on‑chain, regulated token that represents short‑term money‑market exposure.
Nigel Khakoo of Ripple described the initiative as a “game‑changer,” adding that the integration lets institutions “move between a stablecoin and a tokenized fund within a single, trusted ecosystem, unlocking real‑world capital efficiency, utility and liquidity.”
Industry data indicates growing institutional interest: a survey by Coinbase and EY‑Parthenon finds that 87% of institutional investors expect to allocate to digital assets by 2025, underscoring demand for regulated, on‑chain products.
Cointelegraph reached out to DBS and Franklin Templeton for comment but had not received a response by publication. Related: Bitwise files for stablecoin, tokenization ETF with US SEC. Related: RWA tokens surge 11% weekly as onchain value peaks at $29B. Magazine: Can Robinhood or Kraken’s tokenized stocks ever be truly decentralized?
How can tokenized cross‑border settlement benefit markets?
Tokenized assets support faster, lower‑cost cross‑border settlement by reducing reliance on slow correspondent banking. Initiatives in Asia, including SBI Shinsei Bank, Partior and DeCurret DCP, are exploring multicurrency tokenized deposits for real‑time clearing to build a 24/7 global settlement network.
Frequently Asked Questions
Can institutions use sgBENJI as collateral?
Yes. DBS will enable sgBENJI to be used as collateral to unlock credit through repurchase agreements with the bank or via third‑party lending platforms, with DBS acting as collateral agent to manage margining and settlement.
How does on‑chain settlement improve cross‑border payments?
On‑chain settlement reduces reliance on correspondent banking, enabling near‑real‑time clearing across currencies. This lowers costs, shortens settlement windows and supports continuous liquidity management for global institutions.
Key Takeaways
- 24/7 trading: RLUSD and sgBENJI trade continuously on the XRP Ledger, allowing instant rebalancing.
- Collateral utility: sgBENJI can be used to access credit, increasing capital efficiency for institutional clients.
- Market impact: The partnership addresses institutional demand for regulated, on‑chain products and faster cross‑border settlement.
Conclusion
This partnership between DBS, Franklin Templeton and Ripple advances tokenized lending on the XRP Ledger by pairing a tokenized money‑market fund (sgBENJI) with a stablecoin (RLUSD) to deliver continuous trading, collateralized credit and faster settlement. Institutions should monitor roll‑out timelines and regulatory updates as tokenized finance scales.
Author: COINOTAG | Published: 2025-09-18 | Updated: 2025-09-18
