Franklin Templeton, Ripple and DBS Pioneer Tokenized Lending on XRP Ledger

In a move that underscores the rapid convergence of traditional finance and blockchain innovation, Ripple has entered into a landmark partnership with Singapore’s DBS Bank and Franklin Templeton, a $1.5 trillion asset manager, to develop tokenized trading and lending solutions on the XRP Ledger. The collaboration highlights how tokenized money market funds and stablecoins are gaining traction as key instruments in institutional finance.

The agreement, formalized through a memorandum of understanding, will see Franklin Templeton tokenize its flagship U.S. dollar short-term money market fund on the XRP Ledger. Known for its fast settlement speeds and low transaction costs, the ledger was chosen as the backbone for the initiative, ensuring both efficiency and scalability.

At the same time, DBS Digital Exchange (DDEx) has begun listing sgBENJI, the tokenized representation of Franklin Templeton’s fund, alongside Ripple USD (RLUSD), Ripple’s U.S. dollar-pegged stablecoin. This pairing allows investors to balance stability and yield, offering a streamlined way to manage market volatility by shifting between a stablecoin and a yield-generating digital asset.

Lim Wee Kian, CEO of DBS Digital Exchange, emphasized the importance of this new financial infrastructure. “Digital asset investors need solutions that can meet the unique demands of a borderless 24/7 asset class,” he said, adding that tokenized securities can drive efficiency and liquidity across global markets.

Beyond trading, the collaboration envisions lending solutions that could transform liquidity management. DBS plans to allow holders of sgBENJI tokens to pledge them as collateral for borrowing, either through repurchase agreements with the bank itself or via third-party lending platforms. Acting as the collateral agent, DBS would ensure the process remains regulated and secure.

This lending mechanism opens up fresh liquidity options for investors, enabling them to unlock credit while maintaining exposure to the income generated by the underlying fund. It effectively mirrors traditional repo markets but within a blockchain-based environment, offering faster execution and reduced counterparty risk.

Ripple executives have described the partnership as a milestone for institutional blockchain adoption. Nigel Khakoo, Ripple’s Vice President and Global Head of Trading and Markets, hailed the initiative as a “game-changer,” noting that 2025 has been a watershed year for on-chain finance. “The linkup between Ripple, DBS, and Franklin Templeton to enable repo trades for a tokenized money market fund with a regulated, stable, and liquid mode of exchange, such as RLUSD, is truly transformative,” Khakoo said.

For investors, the collaboration provides a single, trusted ecosystem in which they can move seamlessly between stablecoins and tokenized funds, unlocking capital efficiency and utility that institutions increasingly demand. By combining liquidity, transparency, and institutional-grade stability, the project could set a precedent for the next generation of tokenized financial products.

As global markets continue to experiment with blockchain integration, Ripple’s partnership with Franklin Templeton and DBS positions the XRP Ledger as a viable hub for tokenized assets and lending — potentially reshaping how capital flows in a digital-first economy.