Asset manager Franklin Templeton, in partnership with Ondo Finance, will launch tokenized versions of its ETFs, which will be accessible directly through crypto wallets.
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.
— Ondo Finance (@OndoFinance) March 25, 2026
Together, we’re bringing exposure to Franklin Templeton-managed investment products onchain through Ondo Global Markets. pic.twitter.com/vY2AqbiMm7
As part of the agreement, Ondo will acquire the company’s funds and issue tokens based on them through a separate firm.
Holders of these products will have rights to income but not to the underlying shares—this structure allows digital assets to be used as collateral or connected to DeFi applications. Ondo's market makers will also provide liquidity, including during hours when traditional exchanges are closed.
This initiative targets a growing class of investors who operate exclusively through wallets and stablecoins, without direct interaction with the stock market.
Initially, Franklin Templeton and Ondo will tokenize five funds: FFOG, FLQL, FGDL, FLHY, and INCE. These include high-yield corporate stocks, primarily from the U.S.
“The selected ETFs represent a good mix of different types of investments. This gives us a great opportunity to test what truly interests a new audience,” said Sandy Kaul, head of innovation at the asset manager.
As of February, Franklin Templeton's assets were valued at approximately $1.7 trillion. Ondo Finance manages tokenized products worth around $2.7 billion.
According to data from RWA.xyz, the market value of real-world digital assets has increased by about 360% since 2025, reaching $26.5 billion.
However, according to Ondo Finance President Ian De Bode, regulatory uncertainty in the U.S. has slowed adoption, as officials have yet to establish clear guidelines for tokenized ETFs.
Several market participants point to the challenges of integrating blockchain with the traditional financial ecosystem, which relies on broker-dealers and authorized participants for the issuance and redemption of shares. Structuring products to accommodate crypto wallets while complying with securities laws remains a significant hurdle.
In March, the U.S. Securities and Exchange Commission approved Nasdaq's proposal to trade tokenized stocks.