Tokenized Cash Joins Forces with Collateral: DBS Transforms Liquidity Using sgBENJI and RLUSD

DBS Bank has partnered with Franklin Templeton and Ripple to boost market efficiency and liquidity by listing Franklin Templeton’s tokenized money market fund, sgBENJI, together with Ripple’s stablecoin RLUSD, on the DBS Digital Exchange (DDEx). This arrangement allows qualifying DBS customers to seamlessly swap RLUSD for sgBENJI, enabling swift portfolio adjustments and the opportunity to earn returns—even amid market fluctuations.

sgBENJI is a token that stands for Franklin Templeton’s Onchain U.S. Dollar Short-Term Money Market Fund, which currently manages around $736 million in short-term government bonds. By utilizing the

Ledger, the collaboration leverages blockchain technology’s speed and low fees, supporting continuous, around-the-clock trading of tokenized fund units. The XRP Ledger’s strengths—including near-instant settlements and high efficiency—were highlighted as major reasons for this project, allowing investors to quickly swap between a stablecoin pegged to the dollar and a tokenized, cash-like fund.

In addition to trading, the initiative is looking into using sgBENJI as collateral for repurchase agreements. DBS will support these repo transactions with its clients or serve as an intermediary on third-party lending platforms, with the collateral securely managed by the bank. This innovation offers a new way for clients to access liquidity without liquidating their fund positions, helping them maintain yield, especially during turbulent markets. Employing tokenized assets in repo deals is expected to widen liquidity sources and could transform how collateral is managed in institutional finance.

This partnership reflects the increasing interest from institutions in digital assets—according to one survey, 87% of institutional investors intend to include digital assets in their portfolios by 2025. For Franklin Templeton, moving sgBENJI onto the XRP Ledger represents a key move in expanding its tokenization initiatives across different blockchains. The company pointed out that blockchain and asset tokenization are opening up innovative financial opportunities that could revolutionize the global financial landscape. Ripple stressed that enabling repo trading for tokenized money market funds backed by RLUSD delivers a secure, regulated, and liquid exchange solution for institutional players.

This venture also highlights the ongoing shift as

increasingly incorporate stablecoins and tokenized assets into their product suites. Ripple’s stablecoin RLUSD has gained traction quickly, achieving a market capitalization of about $244 million in the first quarter of 2025. As tokenized cash solutions become more widespread, they are set to make financial transactions faster, cheaper, and more transparent, especially for institutional and cross-border uses. This evolution is being supported by new regulatory measures, including the GENIUS Act in the U.S. and MiCA in the EU, which are shaping the regulatory landscape for tokenized assets.