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DBS, Franklin Templeton, and Ripple have signed a memorandum of understanding (MOU) to launch tokenized trading and lending services built on the XRP Ledger. The initiative, described as the Ripple tokenized lending concept, is designed to give institutional investors new tools for navigating market volatility by enabling seamless shifts between stablecoins and yield-generating assets.
“Digital asset investors need solutions that can meet the unique demands of a borderless 24/7 asset class,” — Lim Wee Kian, CEO, DBS Digital Exchange (DDEx).
The Ripple tokenized lending concept will allow clients to trade Franklin Templeton’s sgBENJI — a tokenized version of its US Dollar Short-Term Money Market Fund — against Ripple USD (RLUSD). Both assets will be listed on DDEx, creating a channel for rebalancing portfolios and generating yields even in uncertain conditions.
In the next phase of the partnership, DBS plans to accept sgBENJI as collateral for credit. Clients will be able to access liquidity either through repurchase agreements with DBS itself or third-party lending platforms, with the bank acting as collateral agent.
Franklin Templeton will issue sgBENJI directly on the XRP Ledger, a blockchain chosen for its low transaction fees and rapid settlement speeds. This structure reinforces the Ripple tokenized lending concept as a regulated, onchain model that aligns with institutional standards.
Ripple’s Nigel Khakoo described the framework as transformative: “Investors can move between a stablecoin and a tokenized fund within a single, trusted ecosystem, unlocking real-world capital efficiency, utility and liquidity that institutions demand.” — Nigel Khakoo, Ripple.
The rollout coincides with a sharp rise in institutional interest in regulated digital assets. A joint survey by Coinbase and EY-Parthenon found that 87% of institutional investors expect to allocate funds to digital assets by 2025.
The Ripple tokenized lending concept speaks directly to this trend, offering a structure where stablecoins and tokenized money market funds coexist within a compliant framework. DBS, Franklin Templeton, and Ripple aim to address institutional requirements for both yield opportunities and portfolio resilience in volatile markets.
It was noted that while the announcement marks a significant step, neither DBS nor Franklin Templeton responded to direct requests for additional comment at the time of publication.
The collaboration reflects a broader global push toward tokenized assets. In Asia, SBI Shinsei Bank, Singapore’s Partior, and Japan’s DeCurret DCP recently signed an MOU to explore multicurrency tokenized deposits for cross-border settlements. That initiative, like the Ripple tokenized lending concept, is grounded in blockchain frameworks that support real-time clearing and liquidity management.
As tokenized markets evolve, the Ripple tokenized lending concept positions DBS, Franklin Templeton, and Ripple at the forefront of building infrastructure for institutional adoption. With efficiency, collateralization, and regulated access as its pillars, the partnership signals a strategic effort to align traditional finance with the fast-growing digital asset economy.
