Ripple Collaborates with DBS and Franklin Templeton to Introduce Trading and Lending Services Supported by XRP-Linked Stablecoin RLUSD
In a significant move for the financial industry, Ripple, DBS Bank, and Franklin Templeton have joined forces to pioneer the tokenization of traditional securities for institutional investors. The collaboration, formalized through a memorandum of understanding signed in Singapore, aims to develop tokenized trading and credit solutions on the XRP Ledger blockchain.
DBS Bank, Singapore's largest bank, and Franklin Templeton, a US-based asset manager, will work alongside Ripple to create new pathways for institutional investors to manage risk, access liquidity, and generate yield. The partnership represents a significant advance in the tokenisation of traditional assets.
At the core of this partnership is Ripple's RLUSD stablecoin. This digital asset, known for its high throughput, low costs, and proven reliability, will be used in a new class of trading solutions. The partnership will enable accredited and institutional clients to trade between a yield-bearing token and Ripple's stablecoin in real time.
Lim Wee Kian, CEO of DBS, stated that the partnership demonstrates how tokenised securities can inject greater efficiency and liquidity in global financial markets. Nigel Khakoo, Ripple's Global Head of Trading and Markets, called the partnership a "game-changer".
The alliance will also explore lending solutions, allowing clients to use sgBENJI tokens as collateral to access liquidity. Investors can switch between cash-like holdings and yield-bearing products using RLUSD. DBS Digital Exchange (DDEx) will list Franklin Templeton's tokenised money market product, sgBENJI, alongside RLUSD. Clients can access these repos and credit lines directly through the bank or through third-party platforms, with DDEx acting as custodian for these pledged assets.
Ripple's recent plans include integrating RLUSD into African markets. VivoPower International's EV subsidiary Tembo announced it will accept RLUSD for vehicle payments, making it one of the first automakers to embrace the stablecoin.
In a press release, Ripple announced the partnership, stating that it aims to launch trading and lending services using Ripple's RLUSD stablecoin and tokenised money market funds. The partnership enhances the interoperability of tokenised securities, paving the way for a more efficient and liquid financial market. The Ripple-DBS-Franklin Templeton alliance is set to create new opportunities for institutional investors in the digital asset space.
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