DBS Bank, Franklin Templeton, and Ripple are joining forces to offer institutional and accredited investors new opportunities in trading and lending with tokenized money market funds.
RLUSD, Ripple’s stablecoin, and sgBENJI, the token of a tokenized money market fund, are key components of this solution. The partners aim to enable investors to acquire sgBENJI tokens via DBS Digital Exchange, with RLUSD serving as the stable currency for reallocations. The goal is to allow faster portfolio rebalancing, increase liquidity, and in later phases explore the use of sgBENJI as collateral for loans. The sgBENJI token is issued on the XRP Ledger to ensure efficiency and low transaction costs.
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Modern treasury functions through tokenization
With sgBENJI, the token of the “Franklin Onchain US Dollar Short-Term Money Market Fund,” investors can now seamlessly rebalance their portfolios between RLUSD and sgBENJI at any time. The advantage is that this can be done around the clock and within minutes – unlike traditional money market funds, which only trade during market hours and often take days to settle.
In the next phase, DBS is exploring whether sgBENJI tokens can be used as collateral – either in repo transactions with the bank or through third parties where DBS acts as collateral agent. This would allow the token not only to serve portfolio management purposes, but also to generate liquidity and function as an instrument for short-term financing systems.
Lending and credit as the next chapter
A key factor of the collaboration is the use of the XRP Ledger. It enables fast, low-cost transactions while ensuring transparency and security for institutional investors. Through integration into DBS’s and Franklin Templeton’s existing infrastructure, client access is simplified and the bridge between traditional and digital financial markets is strengthened.
Especially in Asia, where regulatory clarity and digital innovation go hand in hand, this model could serve as a blueprint. The combination of stable investment instruments like money market funds with blockchain technology opens up new ways to mobilize liquidity and channel institutional capital into the digital asset world.
