The Singapore-based DBS Group works with Crypto Fintech Ripple and US asset manager Franklin Templeton to provide tokenized trading and lending services to accredited and institutional investors. The move aims to increase institutional demand for regulated chain investment products.
DBS will build a digital exchange on Ripple’s XRP ledger blockchain to provide trading and lending services to tokenized money market funds and stubcoin. The trio signed a Memorandum (MOU) and marked one of their biggest efforts to integrate traditional money market funds with stubcoin and blockchain technology.
DBS Bank in Singapore launches digital exchange to trade stubcoins with tokenized money market funds
Under the agreement, DBS, Singapore’s largest lender, will list Franklin Templeton’s Sgbenji tokens (a short-term money market fund of tokenized US dollars) alongside Ripple USD (RLUSD) Stablecoin. DBS Digital Exchange. The bank noted that the setup would allow investors to trade between SGBENJI and RLUSD at any time, allowing them to better manage their volatility by quickly rebalancing their portfolios and earning yields in uncertain market conditions.
DBS is exploring plans to allow clients to use SGBENJI tokens as collateral to use as collateral to obtain credit through bank repurchase agreements (REPOs) or third-party lending platforms.
Franklin Templeton issues Sgbenji on the XRP ledger. This was chosen by the Wall Street giants for fast settlements, low rates and efficiency. Tokens can be traded using RLUSD on DBS Digital Exchange.
RLUSD was launched by Ripple in December 2024 and has been steadily growing ever since. As of September 17th, dollar-backed stubcoin has achieved a market capitalization of $730 million.
The collaboration is seen as an important step towards institutional adoption of blockchain-based financial products and services using Ripple’s VP and head of global trading and markets, Nigel Khakoo, and calls this effort a “game changer.” He noted that enabling repo trading of RLUSD-backed tokenized money market funds within a single, reliable ecosystem provides the regulatory, stable, liquid exchange mechanisms required by institutions.
87% of institutional investors expect to allocate funds to digital assets in 2025
DBS, Franklin Templeton and plans to commence trading and lending for Ripple Tokenized assets It comes when such products are gaining position across the global market. A recent survey by Coinbase and Ey-Parthenon shows that 87% of institutional investors expect to allocate funds to digital assets by the end of 2025.
In a similar venture, on September 17, Japanese bank SBI Shinsei partnered with DeCurret CDP and Singapore-based Partyall to explore multicurrency tokenized sediments for cross-border settlements. The trio signed the MOU to develop a blockchain-based framework that allows for real-time clearing in multiple currencies 24/7, allowing for less reliance on traditional correspondent banks.
DeCurret operates the DCJPY platform. This allows Japanese banks to issue circular tokenized sediments. SBI Shinsei plans to expand the facility beyond the Japanese Yen and aims to meet the increased demand for faster international payments by issuing tokenized deposits in other major global currencies.
Partrior already has a multicurrency reconciliation infrastructure used by major financial institutions, such as JPMorgan, DBS, Deutsche Bank and Standard Chartered. Platforms supporting the US Dollar (USD), Euro (EUR) and Singapore Dollar now include Japanese Yen (JPY) under the agreement.
Global Central Bank leverages tokenized assets to bring TRADFI to digital finance
Last year, the Bank of International Reconciliation (BIS) launched Project Agora in collaboration with the US Federal Reserve, the Bank of England, the Bank of Japan, the Bank of France, the Bank of Korea, the Bank of Mexico and the Swiss National Bank. The initiative aims to use a unified blockchain ledger to connect iconic commercial bank deposits with tokenized wholesale central bank money to streamline global payments, reduce cross-border inefficiencies, and enable smart contract capabilities to maintain the banking system.
In 2022, Singapore (MAS) Money Authority announced its “Project Guardian,” an initiative focused on utilization. Decentralized Finance (defi) To facilitate protected borrowing and lending of tokenized assets on public blockchain networks. The central bank has partnered with JPMorgan, DBS Bank, Deutsche Bank, Moody and Market Node for infrastructure development and token issuance, but has partnered with global regulators such as the UK Financial Conduct Authority (FCA), Swiss Financial Markets Supervisory Authority (FINMA), and Japan Financial Services Agency (FSA).
