Key Highlights
- A collaboration between Franklin Templeton and Ondo Finance brings tokenized ETF products to crypto wallet users worldwide
- International investors in Europe, Asia-Pacific, Middle East, and Latin America can access these products initially, with US availability pending
- Ondo Global Markets will distribute five funds spanning US stocks, bonds, and precious metals
- A special-purpose vehicle structure issues tokens that provide economic returns without direct share ownership
- The tokenized equity sector nearly doubled from approximately $500 million to $950 million between early 2025 and March 2026
Franklin Templeton, a global investment powerhouse managing approximately $1.7 trillion in assets, has announced a strategic alliance with blockchain technology provider Ondo Finance to introduce tokenized versions of its exchange-traded fund products.
We’re excited to announce that Ondo has partnered with Franklin Templeton (@FTDA_US), one of the world’s largest asset managers with $1.7T AUM.
Together, we’re bringing exposure to Franklin Templeton-managed investment products onchain through Ondo Global Markets. pic.twitter.com/vY2AqbiMm7
— Ondo Finance (@OndoFinance) March 25, 2026
These innovative offerings will enable investors to access traditional asset classes including US stocks, government and corporate bonds, and gold through digital tokens stored in cryptocurrency wallets—eliminating the requirement for conventional brokerage accounts.
Bloomberg initially broke the news, which Ondo Finance subsequently verified through its official X account. Both organizations have not yet provided further commentary on the announcement.
The operational framework involves Ondo purchasing Franklin Templeton ETF shares and creating corresponding tokens via a dedicated special-purpose vehicle. While token owners gain exposure to the financial performance of these assets, they don’t hold direct ownership of the actual securities.
These digital tokens offer versatility, functioning as collateral or integrating seamlessly with decentralized finance protocols. Market makers affiliated with Ondo ensure continuous liquidity provision, facilitating transactions beyond standard market hours and delivering true 24/7 market access.
The inaugural offering encompasses five distinct funds, all available through Ondo Global Markets. Since its September 2025 debut, this platform has accumulated over $620 million in total value locked, processed more than $12 billion in trading volume, and attracted approximately 60,000 active users.
The partnership extends beyond product distribution to include educational initiatives designed for crypto-focused investors who may lack experience with traditional long-term investment approaches.
International Launch Precedes Domestic Availability
The tokenized ETFs will debut in regions including Europe, Asia-Pacific, the Middle East, and Latin America. American investors will need to await additional regulatory guidance before gaining access.
Notably, the US Securities and Exchange Commission concluded a lengthy investigation into Ondo Finance in December 2025 without filing any enforcement actions.
The tokenized equity market has experienced substantial expansion, with aggregate value climbing from approximately $500 million in early 2025 to roughly $950 million by March 2026, based on RWA.xyz analytics. Ondo currently dominates this emerging sector, controlling around $562 million—representing approximately 60% of the total market.
Competing platforms in this space include Backed Finance with its xStocks offerings and Securitize.
Industry-Wide Momentum Toward Tokenization
In February, Kraken introduced tokenized equity perpetual futures contracts through its regulated derivatives infrastructure, providing qualified international clients with leveraged exposure to US equity indices, gold, and individual stocks including Nvidia, Apple, and Tesla.
Most recently, Coinbase rolled out stock perpetual futures for eligible international users, broadening around-the-clock access to equity markets alongside cryptocurrency and prediction market products.
This Tuesday saw the New York Stock Exchange formalize an agreement with Securitize to investigate blockchain-enabled trading mechanisms for stocks and ETFs. The timeline and implementation details for US investor access remain undisclosed.
Franklin Templeton has previously collaborated with Binance on tokenization projects and continues developing additional digital asset solutions parallel to this Ondo Finance venture.
