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In a groundbreaking partnership, DBS and Franklin Templeton are set to launch trading and lending solutions powered by tokenized money market funds and Ripple's RLUSD stablecoin.
In a tweet, Ripple announced this move, which it calls the next building block of on-chain markets. Ripple's partnership with DBS Bank and Franklin Templeton would establish repo markets powered by tokenized collateral and stablecoins.
Investors will be able to use RLUSD to trade for Franklin Templeton’s money market fund, sgBENJI, tokenized on the XRP Ledger and listed on DBS’s digital exchange, earning yield and opening new liquidity venues.
Ripple President Monica Long took to X to hail the recent move while explaining why it remains essential.
In a tweet, Long outlined two key essentials required for tokenized financial assets to solve intended problems: liquid secondary markets and utility for these assets (such as with collateralization). The Ripple president stated that these two essentials remain the basis of the Ripple, DBS bank and Franklin Templeton partnership.
Jack McDonald, CEO of StandardCustody and SVP of Stablecoins at Ripple, also took to X to celebrate the milestone, a foray into an expanding market.
McDonald noted that repo transaction volume is well into the tens of trillions globally (nearly $12 trillion in the U.S. in 2024). More significantly, the partnership will enable the first-ever repo trade for a tokenized money market fund with RLUSD.
Ripple president hails regulatory shift
In a separate tweet, Ripple President Monica Long hails the current regulatory shift in the U.S. While in years past, legal uncertainty has stifled innovation, Long stated that the good news now is that this is rapidly changing.
The Ripple president cited the Genius Act, Clarity and now the Responsible Financial Innovation Act, which are set to impact the regulatory climate.
"We look forward to seeing crypto market structure written into law with bipartisan support that will set the stage for U.S. leadership in this blockchain revolution," Long concluded in her tweet.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team