- Franklin Templeton and Ondo launch five tokenized ETFs, offering blockchain-based exposure to stocks, bonds, and gold.
- Tokens track ETF performance via SPV structure, enabling access through wallets without direct share ownership.
- Platform targets global investors with 24/7 trading, while U.S. access remains limited by regulation.
Franklin Templeton and Ondo Finance launched a partnership to tokenize five exchange-traded funds for blockchain distribution. The announcement came as Ondo Global Markets expands its tokenized securities platform. The funds include exposure to equities, bonds, and gold. Franklin Templeton manages over $1.7 trillion in assets globally.
Tokenized ETFs Expand Through Ondo Platform
The partnership introduces tokenized versions of five Franklin Templeton ETFs on Ondo Global Markets. The funds include FFOG, FLQL, FGDL, FLHY, and INCE. Each ETF covers different asset classes, including growth equities, large-cap stocks, fixed income, and gold.
Notably, Franklin Templeton continues managing the underlying ETFs. Meanwhile, Ondo provides tokenization infrastructure and digital distribution through blockchain networks. Investors receive exposure through tokens linked to underlying ETF performance.
The structure uses a special-purpose vehicle. It allows Ondo to purchase ETF shares and issue blockchain-based tokens. These tokens pass through economic exposure without direct share ownership.
Blockchain Access Model Targets Global Investors
Ondo Finance said the tokens will be available across Europe, Asia-Pacific, the Middle East, and Latin America. However, U.S. availability depends on regulatory conditions.
Additionally, the model targets users operating through crypto wallets and stablecoins. It removes reliance on traditional brokerage accounts for access to ETF exposure.
Liquidity support comes from Ondo market makers. This setup allows trading outside standard market hours. It also enables continuous access aligned with crypto market infrastructure.
According to platform data, Ondo Global Markets has processed over $12 billion in volume. The platform reports more than 70,000 holders since launch.
Tokenized Securities Market Continues Expanding
Tokenized equity markets have expanded during the past year. Data from RWA.xyz shows growth from about $500 million to roughly $950 million in total value.
Ondo Finance currently holds the largest share of the market. Other participants include Backed Finance and Securitize, which operate smaller tokenized asset offerings.
Meanwhile, additional platforms have introduced related products. Kraken launched tokenized equity perpetual futures for non-U.S. users. Coinbase also introduced stock perpetual futures for continuous trading access.
Regulatory limits still restrict U.S. access to tokenized equities. However, the SEC previously closed an investigation into Ondo without charges. The New York Stock Exchange also signed an agreement with Securitize to explore blockchain-based trading systems.
