Singapore’s largest bank, DBS Group Holdings (OTC:DBSDY), asset management firm Franklin Templeton and blockchain company Ripple Labs (CRYPTO: XRP) have teamed up to provide accredited investors trading solutions backed by tokenized money market funds and U.S. dollar-pegged stablecoins.
Franklin Templeton’s BENJI Fund Comes To DBS Bank
This collaboration will facilitate the listing of Franklin Templeton’s sgBENJI token, which represents its tokenized U.S. dollar money market fund, on the DBS Digital Exchange. Ripple’s USD (CRYPTO: RLUSD) stablecoin will also be listed alongside. Franklin Templeton will use the XRP ledger to tokenize the sgBENJI tokens.
“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,” DBS said in a statement.
The bank added that it will explore the possibility of enabling clients to use sgBENJI tokens as collateral in the next phase of the partnership.
The Background
Franklin Templeton launched America’s first blockchain-powered money market fund, backed primarily by government securities, cash and repurchase agreements, in 2023. Each share of the fund is represented by one BENJI token.
The fund had a total asset value exceeding $736 million as of this writing, according to rwa.xyz.
Notably, Franklin Templeton is one of the several issuers that have filed applications with the SEC to launch a spot exchange-traded fund tracking the XRP token.
Price Action: At the time of writing, XRP was exchanging hands at $3.10, up 2.94% in the last 24 hours, according to data from Benzinga Pro.
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