Ripple, Franklin Tokenized MMF Deal
Ripple posted a press release, "DBS and Franklin Templeton to Launch Trading and Lending Solutions Powered by Tokenised Money Market Funds and Ripple's RLUSD Stablecoin." It says, "DBS, Franklin Templeton and Ripple are partnering to provide accredited and institutional investors with innovative trading and lending solutions, powered by tokenised money market funds on the XRP ledger blockchain and stablecoins such as Ripple USD (RLUSD)." The release continues, "This partnership -- formalised with the signing of a memorandum of understanding -- brings together the unique strengths of one of Asia's largest financial institutions, a global investment manager and the leader in enterprise blockchain and cryptocurrency solutions. It marks a new milestone in the growing maturation of the digital asset ecosystem, which is already seeing greater interest from institutional investors allocating to the asset class -- some 87% of institutional investors expect to make investments into digital assets in 2025." The update adds, "To enable clients to manage their digital asset portfolios more nimbly in response to rapidly changing market conditions, DBS Digital Exchange (DDEx) will list sgBENJI -- the token of Franklin Templeton's tokenised money market fund, Franklin Onchain U.S. Dollar Short-Term Money Market Fund -- alongside RLUSD. With this setup, eligible DBS clients can trade RLUSD for sgBENJI tokens, enabling them to rebalance their portfolios into a relatively stable asset 24/7 and within minutes, while earning yield during periods of volatility. In the next phase of the partnership, DBS will explore helping clients unlock liquidity by using their sgBENJI tokens as collateral. Potential use cases include obtaining credit either from the bank via a repurchase transaction (repo), or from third-party platforms where DBS will act as an agent holding the collateral. This gives clients access to wider liquidity pools while providing peace of mind to clients and third-party lenders that the pledged collateral is held with a trusted bank."
