Ripple and DBS Partner: Everything You Need to Know About the sgBENJI Stablecoin Fund
With a new collaboration with Franklin Templeton and Ripple, DBS Bank is bolstering its foray into digital assets. Through the partnership, accredited and institutional investors will have access to stablecoin services and tokenized money market funds. The biggest lender in Singapore stated that it will list Franklin Templeton’s sgBENJI token in a statement on September 18 that was reported by Reuters. On the DBS Digital Exchange, the token stands for units of its tokenized US dollar money market fund. In order to allow investors to switch between the two and take advantage of yield possibilities, the offering will be linked with Ripple’s U.S. dollar stablecoin, RLUSD.
XRPL to Power Franklin Templeton’s Tokenized Fund in DBS Partnership
According to DBS, the arrangement enables direct trading between a regulated stablecoin and a tokenized money market fund. This might increase market liquidity and efficiency globally. Because of its speed, affordability, and interoperability, Ripple’s XRP Ledger will be used by Franklin Templeton to issue the sgBENJI coin. Additionally, DBS intends to broaden the service by allowing customers to use sgBENJI tokens as security for loans. DBS would serve as the custodian of the pledged collateral in third-party lending platforms and bank-run repurchase transactions (repos), two options that are being considered.
This partnership demonstrates how tokenized securities can play that role while injecting greater efficiency and liquidity in global financial markets,
Lim Wee Kian, chief executive officer of DBS Digital Exchange
DBS, Ripple, and Franklin Templeton Set Stage for Next-Gen Finance
The collaboration coincides with an increase in tokenization efforts by banks and asset managers. While Franklin Templeton, which manages more than $1.5 trillion in assets, has been rapidly expanding its tokenized fund operations, Ripple has been building RLUSD as a bridge between institutional finance and blockchain-based payments. By integrating sgBENJI with RLUSD, DBS is effectively piloting the first repo deals utilizing tokenized money market funds and regulated stablecoins. The move shows increasing institutional confidence in tokenization, with estimates suggesting that tokenized assets might reach $16 trillion by 2030.
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