Financial firms DBS, Franklin Templeton, and Ripple have all partnered through an MoU as part of a collaborative effort to launch buying, selling, and collateralized lending of tokenized money market funds using the RLUSD stablecoin as a settlement token for trades, as per an official press release.
Money market funds are considered a highly liquid asset class that offers investors access to short-term investments such as treasury bills, commercial paper, and certificates of deposits, financial instruments that usually have a maturity of less than one year. They are usually considered safer investments.
The statement by Ripple says that investors will be able to get access to money market funds through sgBENJI, a digital token created by Franklin Templeton, which is soon to be registered on the XRP ledger.
Under the new agreement, investors can rebalance their digital asset portfolios using the sgBENJI token for stability.
DBS will be listing both RLUSD and sgBenji through its digital exchange.
The update comes just after the Federal Reserve cut rates by 0.25% after which the yield for 10-year U.S. treasury bonds improved slightly.
“Having been active in Asia’s blockchain ecosystem since 2021, this initiative strengthens our leadership position and represents a new front in DBS’ mission to provide our clients with trusted, institutional-grade solutions to build their digital asset portfolios,” said DBS Digital Exchange CEO Lim Wee Kian.