Wall Street Moves Onchain as Franklin Templeton and Ondo Finance Accelerate Tokenized Access to ETFs

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Ondo Finance and Franklin Templeton Collaborate to Tokenize ETFs on Blockchain

Empowering individuals with access to traditional financial instruments through blockchain technology is gaining momentum. In a recent announcement on March 25, Ondo Finance unveiled a partnership with Franklin Templeton to offer tokenized exposure to exchange-traded funds (ETFs). This initiative brings five ETFs onto the blockchain via Ondo Global Markets, creating alternative distribution channels for well-established asset classes.

Under this collaboration, Franklin Templeton remains in charge of managing the underlying funds, while Ondo provides the tokenization framework and digital access layer. By tokenizing five Franklin Templeton ETFs spanning growth, large cap, fixed income, equity income, and gold, Ondo Finance introduces a novel way for investors to engage with these assets directly onchain. This marks a significant milestone as it represents the first instance of tokenized FT-managed ETFs being available on the blockchain.

The five ETFs included in this offering are the Franklin Focused Growth ETF (FFOG), Franklin U.S. Large Cap Multifactor Index ETF (FLQL), Franklin Responsibly Sourced Gold ETF (FGDL), Franklin High Yield Corporate ETF (FLHY), and Franklin Income Equity Focus ETF (INCE).

Beyond just the product lineup, the structure of these tokenized ETFs transforms traditional brokerage-style ownership into wallet-based access by issuing digital representations of ETF shares. Ondo acquires the underlying securities in conventional markets, stores them within a regulated framework, and then creates blockchain-based tokens that reflect ownership. This approach enables investors to hold these assets directly in crypto wallets, eliminating the time and access restrictions typically associated with traditional markets.

Tokenized ETFs offer continuous trading opportunities outside of regular exchange hours, allowing for self-custody through digital wallets instead of intermediary accounts. This format also enables these assets to seamlessly integrate into decentralized finance systems, where they can be utilized as collateral without the need for liquidation.

Tokenization Revolutionizes Global Asset Distribution

Each of the five ETFs maintains exposure to distinct asset classes, ranging from growth equities and large-cap stocks to gold, high-yield corporate bonds, and income-focused equities. For example, the Franklin Focused Growth ETF targets innovative companies, FLQL employs a multifactor strategy focusing on quality metrics, and FGDL tracks responsibly sourced gold.

Moreover, this partnership expands geographic accessibility for investors who may not have direct access to U.S. brokerage infrastructure. Participants in regions like Latin America or Asia can now gain exposure to these ETFs through stablecoins and digital wallets, with a primary focus on non-U.S. jurisdictions due to regulatory considerations.

Ondo Finance emphasized that the collaboration with Franklin Templeton establishes a cutting-edge model for globally distributing premier financial products via blockchain technology, while upholding institutional standards.

Frequently Asked Questions 🧭

Why is tokenizing ETFs advantageous for investors? Tokenization enhances access, liquidity, and enables blockchain-based ownership and transfers.

How does Ondo Global Markets impact ETF distribution? Ondo Global Markets introduces blockchain infrastructure that facilitates global, digital access to traditional financial products.

What assets are part of the tokenized ETF offering? The lineup includes growth equities, large-cap stocks, bonds, income equities, and exposure to gold.