Ripple has reached a significant partnership: teaming up with Franklin Templeton and DBS Bank to explore the tokenization repurchase market.

Blockchain company Ripple in San Francisco announced a significant partnership with global asset management giant Franklin Templeton and Asia's largest banking institution DBS Bank. The three parties will utilize stablecoin and tokenization collateral to jointly develop a blockchain-based repurchase market. This collaboration aims to provide investors with a new way to quickly transfer assets from volatile tokens to yield-bearing tokenized products during periods of fluctuation.

Ripple Reaches Major Cooperation: Giants Join Forces to Explore the Blockchain Repurchase Market

As part of this collaboration, Franklin Templeton's sgBENJI Token will be launched on a cryptocurrency exchange in Singapore. sgBENJI represents the tokenization of shares in its U.S. short-term money market fund (MMF). The token will be instantly redeemable for Ripple's RLUSD stablecoin, which will also be launched on the platform simultaneously. This means investors will have the opportunity to quickly transfer non-yielding volatile tokens into safer tokenized yield products during market fluctuations.

Tokenization Buyback: Bringing Traditional Financial Models onto the Blockchain

The next phase of the cooperation will involve more complex financial operations: the repurchase market. Investors will be able to use sgBENJI tokens as collateral to obtain short-term loans in cash or stablecoin form from DBS Bank or third-party lending institutions.

This is similar to the typical operation of the repurchase market in traditional finance: financial institutions use U.S. Treasury bonds as collateral to obtain short-term loans and release more liquidity. By bringing this model onto the blockchain, Ripple, Franklin Templeton, and DBS Bank aim to demonstrate the potential of tokenized assets and stablecoins in building efficient and transparent financial infrastructure.

XRPL and RLUSD: The Core of New Financial Infrastructure

It is worth noting that Franklin Templeton will issue sgBENJI tokens on the XRP Ledger network and several other blockchains. Ripple believes that XRPL is the ideal choice for handling high-capacity currency market fund tokens.

At the same time, Ripple's RLUSD stablecoin (with a market cap currently close to 730 million USD) will serve as the trading base currency for sgBENJI. Nigel Khakoo from the Ripple team claims that using stablecoins to facilitate the repurchase transactions of tokenized money market funds will be a "disruptive" innovation.

Conclusion

The collaboration between Ripple and Franklin Templeton, as well as DBS Bank, is another important milestone in the increasing integration of cryptocurrency and traditional finance. It is not just a simple listing partnership, but a bold practice of applying stablecoins and tokenization of assets in the real world—especially in professional financial markets. This project will provide a strong use case for blockchain technology in high liquidity financial areas such as repurchase agreements and pave the way for broader institutional adoption in the future.