Ripple, DBS, Franklin Templeton Launch Tokenized Repo Markets

The memorandum of understanding between Ripple, DBS Bank, and Franklin Templeton establishes a framework for developing repo markets powered by tokenized collateral and stablecoins. Central to this initiative is the listing of Franklin Templeton’s sgBENJI token—representing its Onchain US Dollar Short-Term Money Market Fund—and Ripple’s regulated stablecoin, RLUSD, on DBS Digital Exchange (DDEx). This integration allows institutional and accredited clients of DBS to execute trades between RLUSD and sgBENJI, facilitating seamless portfolio rebalancing into stable assets and yield generation during market volatility.

The partnership directly addresses a critical gap in digital asset investing: many institutional holders of cryptocurrencies like Bitcoin (BTC), Ether (ETH), and XRP lack efficient mechanisms to earn yield on their holdings. By leveraging the XRP Ledger’s capabilities, the collaboration introduces a structured environment where tokenized money market funds can serve as both investment vehicles and collateral, enhancing liquidity without compromising institutional safeguards.

A key innovation in this partnership is the planned enablement of repurchase (repo) transactions, where clients can use sgBENJI tokens as collateral to obtain liquidity. Investors will have the option to engage in repo agreements directly with DBS or through third-party platforms, with DBS acting as a trusted agent holding the collateral. This model not only expands liquidity options but also ensures that pledged assets are managed under rigorous institutional standards, reducing counterparty risk.

The repo market initiative is particularly significant given the growing institutional demand for blockchain-based financial solutions. According to survey data cited by Ripple, 87% of institutional investors expect to allocate capital to digital assets in 2025. This trend underscores the urgency for infrastructure that supports both liquidity and yield, positioning the Ripple-DBS-Franklin Templeton collaboration as a timely response to market needs.

To strengthen interoperability, Franklin Templeton will tokenize sgBENJI on the XRP Ledger, adding to its existing blockchain integrations. This move enhances the fungibility and utility of tokenized assets across multiple platforms, reinforcing the XRP Ledger’s role as a foundational layer for institutional blockchain applications. The development follows Ripple’s recent custody agreement with Spanish banking giant BBVA, which adopted Ripple Custody for its crypto services in anticipation of Europe’s MiCA regulatory framework.

Nigel Khakoo, Ripple’s VP and Global Head of Trading and Markets, emphasized the transformative potential of the partnership, noting that it represents a ‘game-change’ in traditional finance’s move onchain. The collaboration not only advances the use cases for RLUSD and sgBENJI but also signals a broader shift toward tokenized financial instruments that offer efficiency, transparency, and accessibility. As institutional interest accelerates, initiatives like this are poised to redefine how assets are managed, traded, and collateralized in the digital age.