Key Highlights
- Major asset manager Franklin Templeton collaborates with Ondo Finance to introduce tokenized ETF products accessible via digital wallets
- Initial rollout targets investors outside the United States, spanning regions including Europe, Asia-Pacific, Middle East and Latin America
- Ondo Global Markets will distribute five investment vehicles tracking US stocks, bonds and precious metals
- A special-purpose vehicle structure issues tokens that provide economic benefits without direct share ownership
- The tokenized equity sector has nearly doubled from approximately $500 million in early 2025 to about $950 million by March 2026
Franklin Templeton, a global investment giant managing approximately $1.7 trillion in assets, has announced a collaboration with blockchain technology company Ondo Finance to deliver tokenized exchange-traded fund offerings.
These investment products will be available through cryptocurrency wallets, eliminating the requirement for conventional brokerage relationships. Market participants can obtain exposure to American equities, debt instruments, and gold through blockchain-based tokens.
Bloomberg initially broke the news, which Ondo Finance subsequently validated on social media platform X. Both organizations had not provided immediate responses to inquiries seeking further details.
The arrangement involves Ondo acquiring Franklin Templeton ETF shares and creating corresponding tokens via a designated special-purpose entity. Individuals holding these tokens gain access to the financial performance of the underlying investments without direct ownership of the actual securities.
These digital tokens can serve as collateral or integrate with decentralized financial protocols. Ondo’s market-making partners will supply liquidity, including beyond standard market hours, facilitating continuous around-the-clock market participation.
The initial product suite encompasses five investment vehicles, which will be made available through Ondo Global Markets. This distribution channel debuted in September 2025 and presently shows more than $620 million in total value locked alongside trading volume exceeding $12 billion across approximately 60,000 active participants.
The collaboration additionally features educational initiatives designed for cryptocurrency-focused investors who may have limited experience with conventional long-term investment approaches in traditional financial markets.
International Markets Receive Priority Access
The first phase will serve European, Asia-Pacific, Middle Eastern and Latin American territories. Availability for United States-based investors remains contingent upon additional regulatory developments.
During December 2025, the United States Securities and Exchange Commission concluded a several-year examination of Ondo Finance without filing any enforcement actions.
The tokenized equity segment has experienced substantial expansion. Aggregate value increased from around $500 million at the beginning of 2025 to nearly $950 million by March 2026, based on information from RWA.xyz. Ondo presently dominates this market with approximately $562 million, representing roughly 60% of the total sector.
Competitors operating in this space include Backed Finance with its xStocks offerings, as well as Securitize.
Industry-Wide Movement Toward Tokenization
During February, Kraken introduced tokenized equity perpetual futures contracts on its regulated derivatives exchange, providing qualified international clients with leveraged positions in US equity indices, gold, and individual stocks such as Nvidia, Apple and Tesla.
The previous week saw Coinbase unveil stock perpetual futures for approved international users, broadening continuous market access to traditional equities alongside cryptocurrency and prediction market instruments.
Earlier this week, the New York Stock Exchange entered into an arrangement with Securitize to investigate blockchain-enabled trading mechanisms for stocks and ETFs. The timeline and implementation details for potential US investor access remain undetermined.
Franklin Templeton has previously collaborated with Binance on tokenization projects and has created additional digital asset solutions in conjunction with this newest Ondo partnership.
