Franklin Templeton and Ondo Finance have announced a partnership to bring tokenized versions of Franklin Templeton’s exchange-traded funds onto blockchain networks, enabling investors to access them through crypto wallets. The arrangement creates a new distribution channel that operates outside traditional brokerage infrastructure. The collaboration was first reported by Bloomberg and subsequently confirmed by Ondo on social media platform X.
Under the structure, Ondo will purchase shares of Franklin Templeton ETFs and issue tokens through a special-purpose vehicle that transfers economic exposure to token holders. Investors receive rights to returns rather than direct ownership of the underlying shares, a design that allows the tokens to be used as collateral or integrated into decentralized finance applications. Liquidity will be provided by Ondo’s market makers, including outside standard trading hours, enabling around-the-clock access.
The initial rollout will cover five funds spanning US equities, fixed income and gold, distributed through Ondo Global Markets. The offering is aimed at investors who operate primarily through crypto wallets and stablecoins, bypassing conventional brokerage systems. Products will initially be available across Europe, Asia-Pacific, the Middle East and Latin America, with access for US investors dependent on further regulatory clarity.
The launch follows a notable regulatory development for Ondo. In December, the US Securities and Exchange Commission closed a multi-year investigation into the company without bringing any charges. That outcome has contributed to a clearer operating environment for the firm as it expands its product offerings in the tokenized asset space.
The partnership arrives as the broader tokenized equity market has grown substantially over the past year. According to data from RWA.xyz, total market value rose from roughly $500 million in early 2025 to approximately $950 million as of March 2026. Ondo Finance currently leads the sector, accounting for around $562 million in value, or approximately 60% of the total market. Other platforms, including Backed Finance and its xStocks products, as well as Securitize, hold significant but smaller shares.
Despite this growth, access to tokenized equity products remains largely concentrated outside the United States. In February, Kraken introduced tokenized equity perpetual futures on its regulated derivatives platform, offering eligible non-US clients leveraged exposure to US stock indexes, gold and individual companies around the clock. Last week, Coinbase similarly launched stock perpetual futures for eligible non-US users, extending continuous access to equities alongside crypto and prediction markets.
Efforts to build regulated tokenized equity infrastructure within the US are nonetheless progressing. On Tuesday, the New York Stock Exchange signed an agreement with Securitize to explore blockchain-based trading of stocks and ETFs, though the timeline and specifics of how such products might become available to US investors remain unclear. The broader industry continues to watch regulatory developments closely as asset managers and exchanges test new models for delivering financial products through blockchain technology.
Originally reported by CoinTelegraph.
