Tokenized Finance Soars as Major Banks Combine Returns and Liquidity in a Single Step

DBS Group has joined forces with U.S. asset manager Franklin Templeton and blockchain company Ripple to roll out tokenised money market funds and stablecoin-driven trading and lending services for institutional and accredited investors. This alliance is designed to harness blockchain’s capabilities to improve liquidity and streamline processes in global financial markets. Through this partnership, Franklin Templeton’s sgBENJI token—representing the Franklin Onchain U.S. Dollar Short-Term Money Market Fund—will be available on the DBS Digital Exchange (DDEx) alongside Ripple’s RLUSD stablecoin, making it possible for qualified investors to switch between these assets and earn returns.

This collaboration represents a significant move toward blending conventional asset categories with digital infrastructure. Lim Wee Kian, CEO of DBS Digital Exchange, pointed out that this project illustrates how tokenised securities can boost financial system efficiency while catering to the round-the-clock, borderless

environment. The sgBENJI token will be launched on Ripple’s XRP Ledger, chosen for its transaction speed, efficiency, and low costs—qualities essential for high-frequency, low-latency products such as tokenised money market funds. Franklin Templeton remarked that this initiative is a notable leap forward in the practical application of tokenised securities and a key milestone for the growth of Asia’s digital asset market.

DBS is looking to broaden the project by letting clients use their sgBENJI tokens as collateral for loans via repurchase agreements (repos) or external platforms. In these scenarios, DBS will serve as the agent safekeeping the collateral, which gives clients greater access to liquidity while ensuring assets remain under the care of a regulated entity. This flexibility allows investors to adjust their portfolios with ease, especially in turbulent markets, by moving between stablecoins and yield-producing tokens.

This venture highlights increasing institutional engagement with digital assets, as recent surveys show that nearly 87% of institutional investors plan to commit capital to this asset class in 2025. The RLUSD stablecoin from Ripple is central to this platform, operating as a regulated, dependable, and liquid exchange medium. Nigel Khakoo, Ripple’s VP and Global Head of Trading and Markets, stated that offering repo trading for tokenised money market funds backed by RLUSD introduces a regulated option for fluidly transitioning between stablecoins and yield-generating assets.

Franklin Templeton’s digital asset team has underscored the transformative impact of blockchain and tokenisation on the global finance landscape. Roger Bayston, Head of Digital Assets at the firm, called the partnership a breakthrough for tokenised securities and emphasized its potential to fuel new developments in asset management and trading. The initiative is in step with wider market trends, as more

look to adopt blockchain technology in their services, aiming to deliver more effective and transparent financial offerings to their clients.