DBS Bank to accept tokenized $736M fund for repo collateral as RLUSD goes live on DDEx
John: Hey everyone, I’m John, your go-to writer at Blockchain Bulletin, where I break down the latest in Web3, crypto, and blockchain in simple terms. Today, we’re diving into an exciting partnership between DBS Bank, Franklin Templeton, and Ripple that’s bringing tokenized funds and stablecoins into the spotlight for trading and lending. For readers who want a full step-by-step guide, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant always eager to learn more about crypto. John, what’s a tokenized fund, and why is this partnership with DBS Bank such a big deal for everyday investors?
What is This Partnership About?
John: Great question, Lila. This partnership, announced on 2025-09-18, involves DBS Bank, a major Singapore-based bank, teaming up with asset manager Franklin Templeton and blockchain firm Ripple to offer trading and lending using tokenized money market funds on the XRP Ledger. Essentially, they’re allowing accredited and institutional investors to use these digital assets as collateral for loans, with Ripple’s new RLUSD stablecoin playing a key role.
Lila: Tokenized money market funds? That sounds like a mouthful. Can you explain it like it’s a digital version of something familiar?
John: Sure thing! Think of a money market fund as a super-safe savings account that invests in short-term, low-risk assets. Tokenizing it means turning shares of that fund into digital tokens on a blockchain, making them easier to trade or use as collateral 24/7. In this case, Franklin Templeton’s fund, worth about $736 million, can now be pledged for repo agreements—short-term loans where you borrow cash against assets (and hey, it’s like pawning your grandma’s jewelry but way more high-tech and without the dusty shop).
Background on the Players
Lila: Okay, got it. Who are these companies, and what’s their history in crypto?
John: Let’s start with DBS Bank. Founded in 1968, it’s Singapore’s largest bank and has been dipping into digital assets since launching its DBS Digital Exchange (DDEx) in 2020-12-10. They’ve been pioneers in blending traditional banking with blockchain. Franklin Templeton, a global investment firm managing over $1.5 trillion as of now, entered the tokenized fund space with their BENJI token in 2021, focusing on institutional-grade products.
John: Ripple, known for the XRP cryptocurrency since 2012, has been building payment solutions and recently launched RLUSD, a dollar-pegged stablecoin, on 2025-09-18 as part of this deal. In the past, Ripple faced regulatory hurdles, like the SEC lawsuit resolved in 2023-08, but they’re now pushing stablecoins for real-world finance.
Lila: Wow, that’s a powerhouse trio. How did this specific partnership come together?
Current Developments and Launch
John: As of 2025-09-18, they’ve signed a memorandum of understanding (MOU) to launch these solutions. RLUSD is now live on DDEx, and DBS will accept tokenized shares from Franklin Templeton’s money market fund as collateral for repurchase agreements (repos). This means investors can borrow funds by pledging these tokens, all on the XRP Ledger for faster, more efficient transactions.
Lila: Repos? Is that like a buyback deal?
John: Exactly—it’s a short-term sale of securities with an agreement to buy them back later, often used for liquidity. Here, it’s tokenized, so it’s digital and borderless. According to Ripple’s official announcement on 2025-09-17, this targets institutional demand for regulated onchain products, with DBS handling custody and trading.
John: Recent updates from CoinDesk on 2025-09-18 confirm DBS is considering letting holders pledge these tokens directly for borrowing, boosting liquidity in tokenized markets (and if you’re wondering, no, this isn’t about quick cash for your next vacation—it’s big-league finance).
How Tokenization Works Here
Lila: Break it down for me—how does tokenization actually function in this setup?
John: Tokenization converts real-world assets into blockchain tokens. For Franklin Templeton’s fund, shares are issued as sgBENJI tokens on the XRP Ledger, representing ownership. RLUSD, pegged 1:1 to the US dollar, provides stable value for lending and trading. It’s all powered by smart contracts for automatic, transparent execution.
John: Imagine it like digitizing a stock certificate: instead of paper, it’s a token you can send instantly worldwide. As per Cointelegraph’s report on 2025-09-18, this partnership uses the XRP Ledger’s speed—transactions settle in seconds—to make repo collateral more efficient than traditional methods.
Use Cases and Benefits
Lila: What are some real-world ways this could be used?
John: For institutional investors, it means 24/7 access to liquidity without waiting for bank hours. A hedge fund could pledge tokenized fund shares to borrow RLUSD for short-term needs, like covering trades. Benefits include lower costs, faster settlements, and better transparency via blockchain.
John: Here’s a quick list of key benefits:
- Faster transactions: XRP Ledger processes in 3-5 seconds vs. days in traditional repos.
- Global access: Accredited investors worldwide can participate through DDEx.
- Regulated stability: Backed by major players like DBS and Franklin Templeton for trust.
- Liquidity boost: Tokenized assets can be used as collateral, unlocking $736 million in potential value.
Lila: That list makes it crystal clear—thanks! It sounds like a game-changer for big investors.
Risks and Considerations
John: Absolutely, but let’s talk risks. Blockchain tech is secure, but there’s always smart contract vulnerabilities or market volatility—though RLUSD is stablecoin-designed to minimize that. Regulatory changes could impact adoption; for instance, Singapore’s Monetary Authority has been supportive, but global rules vary.
Lila: Any safeguards in place?
John: Yes, DBS emphasizes compliance, limiting this to accredited investors. Ripple’s RLUSD is backed by reserves and audited, as noted in their 2025-09-17 press release. Always research and consult pros—remember, this is evolving tech.
Looking Ahead
Lila: What’s next for this partnership?
John: Looking ahead, we might see expansion to more asset types or retail access by 2026, based on current trends. Ripple plans to grow RLUSD adoption, and with DBS’s push into Asia-Pacific, this could reshape tokenized finance. Keep an eye on updates from official sources like Ripple’s blog.
John: There you have it, folks—this partnership is a solid step toward blending traditional finance with blockchain, making things faster and more accessible for institutions. It’s exciting to see crypto maturing like this. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Totally agree—it’s a reminder that crypto isn’t just about trading coins; it’s revolutionizing how money moves. Stay curious and informed!
This article was created using the original article below and verified real-time sources:
- DBS Bank to accept tokenized $736M fund for repo collateral as RLUSD goes live on DDEx
- Ripple News: DBS, Franklin Templeton and Ripple sign MOU to launch trading and lending solutions
- DBS, Franklin Templeton, Ripple team up to launch tokenized lending
- DBS and Franklin Templeton to Launch Trading and Lending Solutions Powered by Tokenised Money Market Funds and Ripple’s RLUSD Stablecoin