Digital currency platform Ripple, Singapore's DBS Bank, and investment firm Franklin Templeton have enabled repositories for tokenised funds.
DBS, one of Asia's largest financial institutions, has announced a groundbreaking partnership with Ripple and Franklin Templeton to provide innovative trading and lending solutions using tokenised money market funds and stablecoins. This collaboration represents a significant step forward in the utility of tokenised securities and the growth of Asia's digital asset ecosystem.
Lim Wee Kian, CEO of DBS Digital Exchange, stated that this initiative strengthens DBS' leadership position and marks a new front in DBS' mission to provide clients with trusted, institutional-grade solutions for their digital asset portfolios.
At the heart of this partnership lies the listing of Franklin Templeton's sgBENJI token on DBS Digital Exchange. This token can be acquired using Ripple's RLUSD stablecoin, which is renowned for its speed, efficiency, and low transaction costs. The XRP Ledger, on which RLUSD operates, was chosen for these very reasons.
The partnership aims to provide institutional investors with an efficient platform for managing the lifecycle of a high-volume, low-latency asset like a tokenised money market fund. With this, investors can seamlessly rebalance their portfolios between a stablecoin and a yield-generating money market fund within the partnership's ecosystem.
Moreover, DBS will explore enabling sgBENJI tokens to be used as collateral to obtain credit from the bank or third-party platforms. In potential use cases, clients could use their sgBENJI tokens as collateral to obtain credit either from the bank via a repurchase transaction (repo) or from third-party platforms where DBS will act as an agent holding the collateral. This capability is expected to be available starting from the first quarter of 2024.
Roger Bayston, Head of Digital Assets at Franklin Templeton, believes this collaboration unlocks powerful new use cases that have the potential to reshape the global financial ecosystem. He further emphasised that this partnership brings together the unique strengths of DBS, a global investment manager, and the leader in enterprise blockchain and cryptocurrency solutions, Ripple.
Nigel Khakoo, VP and Global Head of Trading and Markets at Ripple, considers this partnership a game-changer in traditional financial institutions moving onchain. He added that the addition of the XRP Ledger to Franklin Templeton's existing line-up of blockchains strengthens interoperability across networks.
This partnership also enables repo trades for a tokenised money market fund using RLUSD stablecoin. Eligible DBS clients can trade RLUSD for sgBENJI tokens 24/7 and within minutes. The partnership represents a new milestone in the growing maturation of the digital asset ecosystem, with 87% of institutional investors expecting to make investments into digital assets in 2025.
In conclusion, the partnership between Ripple, DBS, and Franklin Templeton is set to revolutionise the digital asset trading and lending landscape, offering institutional investors a more efficient and nimble way to manage their digital asset portfolios.
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