Catenaa, Wednesday, March 25, 2026- Franklin Templeton has partnered with Ondo Finance to issue tokenized versions of five exchange-traded funds tracking equities, bonds and gold, expanding access to traditional assets through blockchain-based infrastructure.
The firms said the products will be available to investors using digital wallets and will trade continuously onchain, allowing round-the-clock access beyond traditional market hours. Liquidity will be supported by Ondo’s market makers, including during periods when stock and bond exchanges are closed.
The offering includes a U.S. growth equity strategy, a large-cap systematic equity fund, a gold-focused ETF, a high-yield corporate bond fund and an income-oriented U.S. equity strategy. Ondo will hold the underlying ETF shares and issue corresponding tokens through a dedicated vehicle.
The move extends Franklin Templeton’s tokenization push, which began in 2021 with its blockchain-based government money market fund. The firm now oversees about $1.7 trillion in assets, while Ondo reports roughly $620 million in total value locked.
The tokenized ETFs are set to launch outside the United States, targeting Europe, Asia-Pacific, the Middle East and Latin America, as regulatory clarity for onchain securities continues to evolve.
Tokenization has accelerated across global markets as asset managers seek to digitize traditional financial instruments. Firms including BlackRock and WisdomTree have introduced blockchain-based funds, while trading platforms such as Coinbase and Robinhood are exploring onchain equities.
The U.S. Securities and Exchange Commission has indicated that tokenized securities fall under existing regulatory frameworks, reinforcing oversight while allowing experimentation.
The partnership signals growing convergence between traditional finance and crypto-native infrastructure. Continuous trading and programmable ownership may attract younger investors and expand access in regions with limited brokerage penetration.
It also intensifies competition among asset managers racing to establish early positions in tokenized markets, where efficiency gains and new distribution models could reshape fund management.
Market analysts say tokenized ETFs could improve settlement speed and reduce operational friction, though adoption depends on regulatory clarity and investor trust. Institutional backing is seen as critical to scaling liquidity and ensuring compliance.
Tokenization converts real-world assets into blockchain-based representations that can be traded and settled digitally. The sector has grown rapidly, with tokenized Treasuries, funds and private credit emerging as early use cases. Industry estimates suggest tokenized assets could reach trillions of dollars in value over the next decade as financial infrastructure shifts toward digital rails.
