Investors Earning Yields through Sgbenji Tokens on DBS Digital Exchange
DBS Exploring Collateral Use for Sgbenji Tokens
Singapore, September 18, 2025 – DBS, Franklin Templeton, and Ripple are collaborating to offer institutional investors innovative trading and lending options. This initiative, leveraging tokenized money market funds and stablecoins like Ripple’s RLUSD, aims to enhance market efficiency.
The partnership was formalized through a Memorandum of Understanding, harnessing the strengths of a major financial institution alongside global investment and blockchain experts. It marks a significant advancement in the digital asset landscape, with heightened interest from institutional investors—around 87% plan to delve into digital assets by 2025.
Innovative Trading and Lending Solutions
Traditionally, digital asset investors focus on public blockchain tokens like Bitcoin and Ether. However, this can expose them to market volatility without yielding portfolio gains. The DBS Digital Exchange (DDEX) lists Sgbenji, allowing clients to better manage their digital asset portfolios alongside RLUSD. This setup lets eligible DBS clients convert RLUSD to Sgbenji tokens swiftly, facilitating portfolio rebalancing in response to market changes.
Looking ahead, DBS is considering leveraging Sgbenji tokens as collateral to enhance client liquidity. This could involve acquiring credits through repurchase agreements or utilizing third-party platforms while DBS acts as the collateral holder. Such an approach could widen liquidity access for clients, offering a layer of security for both clients and lenders.
Strengthening the Tokenization Ecosystem
To bolster the tokenization framework, Franklin Templeton is integrating Sgbenji with the XRP ledger. This addition aims to improve interoperability across different blockchain networks, making them more accessible to various participants. The XRP ledger was selected for its transaction speed and low costs, making it suitable for managing large volumes of low-latency assets like tokenized money market funds.
“Investors in digital assets are looking for solutions that address their unique needs,” said Lim Wee Kian, CEO of DBS Digital Exchange. “This partnership reflects our commitment to enhancing liquidity and efficiency in global financial markets.” He noted that DBS has been active in the Asian blockchain scene since 2021, emphasizing the bank’s focus on delivering reliable solutions for digital asset portfolios.
Roger Baston, Franklin Templeton’s head of digital assets, remarked on the potential of blockchain and tokenization to reshape the financial ecosystem. Nigel Khakoo from Ripple described the collaboration as transformative for enabling repository trading of tokenized money market funds within stable liquidity exchange models.
Investors should remember the risks associated with cryptocurrency trading and ensure they understand their investment objectives and risk tolerance before making decisions.
[1] Money market funds typically hold safe, short-term securities and are seen as liquid investments offering yields.
[2] Predictions suggest a growing allocation in established markets.
[3] Sgbenji is structured as a sub-fund of Franklin Templeton Investments.
[4] Unlike traditional money market fund trading, which follows business hours, tokenized funds facilitate rapid portfolio management at any time.
[5] A repo is a short-term borrowing method where one party sells securities for cash and agrees to repurchase them later at a higher price, effectively borrowing against collateral.
