DBS, Franklin Templeton, Ripple Partner on Tokenized Money Market Funds for Institutional Investors

Financial Institutions Advance Tokenized Asset Offerings

DBS Group Holdings, Franklin Templeton, and Ripple Labs have announced a significant partnership aimed at expanding access to tokenized money market funds and stablecoins for accredited and institutional investors. The collaboration, formalized through a memorandum of understanding, positions the DBS Digital Exchange (DDEx) as a key platform for these offerings, further integrating traditional finance with the burgeoning digital asset ecosystem.

Detailing the Collaboration and Product Offerings

Under the terms of the agreement, Franklin Templeton's sgBENJI token, representing its Franklin Onchain U.S. Dollar Short-Term Money Market Fund, will be listed on the DBS Digital Exchange. Complementing this, Ripple's USD (RLUSD) stablecoin will also be made available on DDEx. This setup will enable eligible DBS clients to trade RLUSD for sgBENJI tokens, facilitating portfolio rebalancing into a relatively stable asset with the potential for yield generation, accessible 24 hours a day, seven days a week, and executable within minutes.

sgBENJI is tokenized on the XRP Ledger, an enterprise-grade blockchain selected for its speed, efficiency, and low transaction costs. RLUSD, launched earlier in 2025, is described as a regulated, stable, and liquid U.S. dollar-pegged stablecoin, backed by reserves and subject to regular audits. The integration aims to enhance settlement and liquidity when paired with tokenized securities.

In a subsequent phase, DBS plans to explore the utility of sgBENJI tokens as collateral. This would allow clients to unlock liquidity by obtaining credit, either directly from DBS through repurchase transactions (repo) or from third-party platforms, with DBS acting as an agent holding the pledged collateral.

Analysis of Market Reaction and Strategic Impact

This partnership underscores a growing trend in the institutional adoption of blockchain technology and tokenized assets. By offering regulated, yield-generating digital asset options, the initiative seeks to bridge the gap between traditional financial instruments and the digital asset space, providing a more stable alternative for portfolio diversification.

Lim Wee Kian, CEO of DBS Digital Exchange, highlighted the broader implications:

"This partnership demonstrates how tokenised securities can play that role while injecting greater efficiency and liquidity in global financial markets."

The move is strategic for all parties involved. For DBS, Southeast Asia's largest bank with over $500 billion in assets as of 2025, it reinforces its leadership in Asia's blockchain ecosystem. Franklin Templeton expands its reach for tokenized funds, leveraging its expertise to bring traditional money market funds onto public ledgers. Ripple extends its focus beyond payments, positioning RLUSD as a compliance-first stablecoin for institutional transactions and market operations, effectively linking stablecoin liquidity with institutional-grade yield.

Broader Context and Implications for Digital Asset Markets

The collaboration reflects a significant shift towards the mainstreaming of digital assets within institutional finance. Industry surveys indicate substantial interest, with approximately 83% to 87% of institutional investors planning to allocate to digital assets in 2025. The market for real-world asset (RWA) tokenization has seen considerable growth, reaching $17.88 billion as of March 2025, an increase from $10 billion in 2024.

Projections from various firms forecast robust expansion for tokenized funds. Boston Consulting Group (BCG), Invesco, and Aptos Labs estimate that tokenized funds could represent 1% of total mutual fund and ETF assets under management (AUM) within seven years, translating to over $600 billion in AUM by 2030. More broadly, Standard Chartered projects tokenized assets could swell to $30.1 trillion by 2030, while Deloitte offers a more conservative estimate of $2 trillion over the next five years.

Roger Bayston, head of digital assets at Franklin Templeton, commented on the significance:

"This collaboration represents a meaningful advancement in the utility of tokenised securities and a significant step forward in the growth of Asia's digital asset ecosystem."

Looking Ahead: The Evolution of Institutional Digital Finance

This partnership sets a precedent for how major financial institutions may further integrate blockchain technology into their core offerings. Key factors to watch include the successful implementation of the collateralization phase for sgBENJI tokens, which could unlock substantial liquidity within the digital asset ecosystem and enhance capital efficiency for institutions.

The trajectory suggests continued growth in tokenized real estate, private equity, and government bonds, all while maintaining regulatory alignment. The ability to create a 24/7 global settlement network, reducing reliance on traditional banking hours, stands to inject greater efficiency and liquidity into global financial markets. Future developments will likely focus on expanding these models and addressing evolving regulatory frameworks to foster wider corporate adoption of tokenized securities.