Ripple partners with DBS, Franklin Templeton on tokenised money market fund trading

Ripple has partnered with DBS Group and asset manager Franklin Templeton to offer accredited and institutional investors access to tokenized money market fund trading and lending solutions on Ripple's XRP ledger and with stablecoins such as Ripple USD (RLUSD).

XRP price jumped amid the news, adding to an uptick seen after CME Group announced options on XRP and Solana futures.

The Ripple token also mirrored the bullish outlook for cryptocurrencies following the Federal Reserve's interest rate cut on Wednesday.

The token traded around $3.08, up 2% as Bitcoin surged above $117k and Ethereum broke the $4,600 mark.

Ripple, DBS and Franklin Templeton partner

The partnership follows a memorandum of understanding between DBS, Franklin Templeton and Ripple to support the adoption of tokenized assets on-chain.

DBS, through its digital asset exchange DDEX, will list Franklin Templeton token sgBENJI alongside RLUSD.

sgBENJI is the token of Franklin Onchain U.S. Dollar Short-Term Money Market Fund, the asset management firm's tokenised money market fund.

This is the latest in a long list of partnerships between Ripple and major financial institutions.

Listing on DDEX will allow eligible DBS clients to trade Ripple's stablecoin RLUSD for sgBENJI tokens, bringing to the market the benefit of yield on their assets.

Khakoo added,

sgBENJI on XRP Ledger

DBS plans to explore further traction for the rollout with an initiative aimed at helping clients to unlock liquidity with BENJI.

Specifically, the Singapore-based lender will add sgBENJI as collateral. This would allow investors to tap into benefits such as bank loans through repurchase transactions.

Other than repos, clients can also get credit from third-party platforms by leveraging DBS as the collateral holder. 

The partnership will also see Franklin Templeton tokenise its sgBENJI on Ripple's XRP Ledger, adding to the growing list of blockchains that support the tokenized asset.

According to Bayston, the collaboration between the three players is another key step in the advancement of the utility of tokenised securities.

With both Ripple and Franklin Templeton being big players in the digital asset space, the collaboration is great for Asia, a region seeing notable growth as a digital asset market.