DBS, Franklin Templeton, Ripple Launch XRPL Tokenized Loans
DBS Bank, Franklin Templeton and Ripple have signed a memorandum of understanding to launch XRPL tokenized lending on the XRP Ledger via DBS Digital Exchange (DDEx). In the first phase, they will list sgBENJI, Franklin Templeton’s US dollar money market fund token, and Ripple USD (RLUSD) on DDEx, enabling 24/7 trading between these stablecoins and yield-bearing assets. Institutional investors can seamlessly switch between RLUSD and sgBENJI to manage portfolio volatility. In the next phase, DBS will allow sgBENJI as collateral in repurchase agreements or through third-party lending platforms, with the bank acting as collateral agent. Franklin Templeton will issue sgBENJI on the XRP Ledger to leverage its low fees and fast settlement. Ripple describes the initiative as a “game-changer” that boosts market efficiency and liquidity for regulated on-chain products. A recent survey shows 87% of institutions expect to allocate to digital assets by 2025.
Bullish
Enabling tokenized lending on the XRP Ledger and listing sgBENJI and RLUSD enhances on-chain utility and liquidity, likely driving demand for XRP. In the short term, institutional appetite for new yield products and portfolio flexibility should boost market sentiment and trading volumes. Over the long term, this partnership could solidify XRP’s role in institutional tokenized finance, sustaining bullish momentum and increasing network usage.