- Ripple, DBS, and Franklin Templeton launch tokenized repo pilot on DBS Exchange.
- Repo trades use Ripple’s RLUSD stablecoin and Franklin Templeton’s sgBENJI token.
- sgBENJI issued on XRP Ledger enables fast collateralized lending and settlements.
DBS, Ripple, and Franklin Templeton have signed a memorandum of understanding to bring repo transactions into tokenized finance. The framework pairs Ripple’s RLUSD stablecoin with Franklin Templeton’s sgBENJI tokenized money market fund, listed on DBS Digital Exchange.
The setup gives accredited clients a path to rebalance cash into a regulated, yield-bearing vehicle while transacting with stablecoins that settle within minutes. For institutions used to overnight repo desks, this is a first look at how traditional liquidity tools can migrate onto public blockchains.
Related: Franklin Templeton Launches its DeFi Solution Benji on Ethereum
Demand From Institutions Shapes the Design
The three firms cited rising demand for digital asset allocations, with surveys showing nearly nine in ten institutional investors plan to increase exposure in 2025. The repo model was chosen because it mirrors an existing backbone of global funding markets: collateralized lending against short-term securities.
By allowing RLUSD to trade directly against sgBENJI on DBS Digital Exchange, desks can manage intraday liquidity, park stablecoin reserves into a fund earning regulated yield, and unwind positions quickly when cash is needed.
DBS to Expand Collateralized Lending
The next phase extends sgBENJI beyond a trading instrument into repo collateral. DBS plans to let investors pledge sgBENJI against credit lines arranged through the bank or third-party lenders. That opens deeper liquidity pools with the assurance that collateral sits inside a regulated balance sheet.
For trading desks, that means onchain repo could eventually function like its traditional counterpart, rolling positions overnight, secured by tokenized assets that settle in near real-time.
XRP Ledger as the Settlement Rail
Franklin Templeton will issue sgBENJI tokens on the XRP Ledger, selected for its low fees and ability to process thousands of transactions per second. Using XRP Ledger as the base layer ensures repo transactions and tokenized fund redemptions meet the speed and finality standards large institutions require.
Related: DBS Bank Launches Tokenized Structured Notes on Ethereum for Institutional Investors
Executives at DBS, Ripple, and Franklin Templeton called the arrangement a milestone for tokenized capital markets. Each emphasized that repo, a trillion-dollar daily funding market in traditional finance, could be one of the first areas where blockchain utility becomes clear to banks, asset managers, and regulators alike.
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Source: https://coinedition.com/ripple-dbs-franklin-tokenized-repo-xrp-ledger/
