DBS Bank, in partnership with Ripple and Franklin Templeton, launch new trading and lending services supported by the RippleNet digital asset XRP.
In an exciting development for the cryptocurrency industry, Ripple, DBS, and Franklin Templeton have announced a strategic partnership. This alliance aims to position Ripple's stablecoin, RLUSD, as a global settlement currency and enhance interoperability for tokenized securities.
The partnership was formalized through a memorandum of understanding (MoU) in Singapore. Under the terms of the agreement, VivoPower International's electric vehicle subsidiary Tembo will start accepting RLUSD as a means of payment for vehicle purchases, marking a significant step towards mainstream adoption of stablecoins.
DBS Digital Exchange (DEx) will list Franklin Templeton's tokenized money market product, sgBENJI, alongside RLUSD. This move will allow accredited and institutional clients to trade yield-generating tokens with Ripple stablecoins in real-time. The exchange will act as custodian for the pledged assets, ensuring secure and efficient transactions.
Nigel Khakoo, Global Head of Trading and Markets at Ripple, called the partnership a "game-changer." He believes this collaboration will create a new pathway for institutional investors to manage risk, access liquidity, and generate returns more efficiently.
Franklin Templeton has committed to issuing sgBENJI tokens on the XRP Ledger, further strengthening the partnership. Clients can access repo facilities and credit lines directly through the bank or through third-party platforms. The partnership also includes the exploration of lending solutions, with DBS helping clients use sgBENJI tokens as collateral to obtain liquidity.
The launch is part of Ripple's efforts to integrate RLUSD into African markets, targeting financial institutions and companies that require dollar-based digital liquidity. This move is expected to contribute to the positioning of RLUSD stablecoin as a global settlement currency.
Investors can now seamlessly rebalance their portfolios between stablecoins and yield-generating money market funds within one trusted ecosystem. The alliance between Ripple, DBS, and Franklin Templeton is an important step in the tokenization of traditional assets.
The CEO of DBS who initiated the partnership project with Ripple and Franklin Templeton is Tan Su Shan. She expressed her enthusiasm about the partnership, stating that it will bring significant benefits to both institutional and retail investors.
This latest development in crypto may signal a new era of stability and efficiency in digital asset transactions. As the partnership unfolds, we can expect to see more innovative solutions emerging from this strategic alliance.
