TLDR
- Franklin Templeton selected Ondo Finance to tokenize five ETFs tied to stocks, bonds, and gold.
- The tokenized ETFs will trade 24/7 through crypto wallets in several non US regions.
- Ondo will hold the ETF shares and issue tokens through a special purpose vehicle.
- The first rollout covers Europe, Asia Pacific, the Middle East, and Latin America.
- Franklin Templeton’s BENJI fund holds over $1 billion and ranks fourth among onchain Treasury funds.
Franklin Templeton has partnered with Ondo Finance to bring five of its ETFs onchain. The move targets investors who use crypto wallets and want constant market access. The products will cover U.S. equities, fixed income, and gold. They will launch outside the United States, while U.S. access still depends on regulatory clarity.
The agreement adds to Franklin Templeton’s push into tokenized finance. It also gives Ondo another role in the fast-growing market for real-world assets on blockchain networks. The funds will trade at all hours, and they can also be used in decentralized finance systems.
Franklin Templeton expands its tokenized fund strategy
Franklin Templeton said the new products include five existing ETFs. These funds are FFOG, FLQL, FGDL, FLHY, and INCE. They represent growth stocks, large-cap stocks, gold, high-yield bonds, and income-focused U.S. equities.
The products are designed for a digital wallet audience. That means investors can access them without using standard brokerage accounts. Bloomberg reported that Ondo market makers will provide liquidity, even when stock and bond markets are closed.
Franklin Templeton has worked on tokenization for several years. In 2021, it launched the OnChain U.S. Government Money Fund, also known as BENJI. The fund was the first U.S.-registered mutual fund to operate on a public blockchain.
According to RWA.xyz data cited in the report, BENJI now has more than $1 billion in assets. That places it as the fourth-largest onchain Treasurys fund. Franklin Templeton also reports about $1.7 trillion in total assets under management.
Ondo will handle the token structure and liquidity
Ondo Finance will buy and hold shares of the underlying ETFs. It will then issue tokens through a special-purpose vehicle. This model mirrors how some other tokenized fund products are structured in the market today.
Because the assets are tokenized, the funds can trade 24/7. That creates a different access model from regular ETF trading hours. It also allows the tokens to move into DeFi systems, where users can hold or deploy them onchain.
Sandy Kaul, head of innovation at Franklin Templeton, described the move as part of a broader shift in digital assets. She said, “The next phase of digital assets isn’t just about trading crypto, but building your optimized financial life onchain.”
Ondo also brings scale to the partnership. The company has about $620 million in total value locked, based on the report. Its role in tokenized Treasurys and other real-world assets has made it a known issuer in the sector.
Launch begins outside the US as rules remain in focus
The first rollout will cover Europe, Asia-Pacific, the Middle East, and Latin America. Franklin Templeton said U.S. availability will require more clarity on how third parties can distribute registered funds onchain.
That point matters because tokenized securities remain subject to securities rules. The report noted that the U.S. Securities and Exchange Commission recently repeated that onchain securities still fall within its regulatory scope.
The launch also comes as more firms enter this market. WisdomTree has extended tokenized funds to Solana, Ethereum, and Stellar. Robinhood, Coinbase, and Kraken are also working on onchain equities and ETF access.
Franklin Templeton’s new plan shows that tokenization is moving beyond cash-like products. By working with Ondo Finance, the firm is now taking equity, bond, and gold ETFs into crypto wallets. The partnership places Franklin Templeton deeper in the race to bring traditional funds onchain.
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