Key Highlights
- A collaboration between Franklin Templeton and Ondo Finance introduces tokenized ETF products accessible via digital wallets
- Non-US markets including Europe, Asia-Pacific, Middle East and Latin America will receive initial access
- Ondo Global Markets will distribute five investment funds spanning US stocks, fixed income securities and gold
- A special-purpose vehicle structure issues tokens that provide economic rights while the underlying shares remain separately held
- Tokenized equity assets have expanded from approximately $500 million in early 2025 to nearly $950 million by March 2026
Franklin Templeton, a global asset management powerhouse overseeing approximately $1.7 trillion in assets, has formed a strategic alliance with blockchain technology company Ondo Finance to introduce digitized versions of its exchange-traded fund offerings.
These innovative financial products enable investors to access portfolios through cryptocurrency wallets, eliminating the requirement for conventional brokerage services. Participants can obtain market exposure to American equities, debt instruments, and precious metals via blockchain-based tokens.
Bloomberg initially broke the story, which Ondo Finance subsequently verified through its X social media account. Both organizations had not provided immediate responses to inquiries seeking further details at the time of publication.
The operational framework involves Ondo acquiring Franklin Templeton ETF shares and creating corresponding tokens via a dedicated legal entity. Those holding these digital tokens gain entitlement to the financial performance of the assets without direct ownership of the actual shares.
These tokens function as collateral instruments and integrate seamlessly with decentralized financial protocols. Market makers affiliated with Ondo supply liquidity beyond conventional market hours, facilitating continuous trading availability.
The debut phase encompasses five investment vehicles, made available through Ondo Global Markets. This distribution channel went live in September 2025 and presently shows over $620 million in aggregate value locked, alongside more than $12 billion in executed trades across approximately 60,000 platform participants.
The strategic partnership additionally incorporates educational initiatives designed for cryptocurrency-focused investors who might lack experience with traditional long-term investment approaches.
International Markets Receive Priority Access
The rollout strategy prioritizes Europe, Asia-Pacific regions, the Middle East and Latin American territories. Availability for US-based investors remains contingent upon future regulatory developments.
In December 2025, the United States Securities and Exchange Commission concluded a several-year examination of Ondo Finance without filing any enforcement actions.
The tokenized stock market sector has experienced notable expansion. Aggregate valuations climbed from around $500 million during early 2025 to approximately $950 million as of March 2026, based on RWA.xyz tracking data. Ondo currently commands the sector with roughly $562 million, representing about 60% of the overall market.
Competing platforms in this emerging field include Backed Finance with its xStocks offerings, as well as Securitize.
Industry-Wide Momentum Toward Tokenization
During February, Kraken introduced tokenized equity perpetual futures contracts on its licensed derivatives exchange, providing qualified international clients with leveraged positions in American stock indices, gold, and major corporations including Nvidia, Apple and Tesla.
The previous week saw Coinbase roll out stock perpetual futures for approved non-US participants, broadening always-available access to equity markets alongside cryptocurrency and forecasting platforms.
This Tuesday, the New York Stock Exchange finalized an arrangement with Securitize to investigate blockchain-enabled trading systems for stocks and ETFs. The timeline and implementation details for potential US investor access remain unspecified.
Franklin Templeton has previously collaborated with Binance on tokenization projects and developed additional digital asset infrastructure parallel to this current Ondo Finance venture.
