Franklin Templeton Expands Tokenized ETFs with Ondo Finance Partnership

Franklin Templeton is partnering with Ondo Finance to bring five of its ETFs tracking stocks, bonds, and gold to the blockchain, targeting crypto-native investors who prefer digital wallets over traditional brokerages.

The move marks a significant step in bridging traditional finance with decentralized ecosystems. By putting these ETFs onchain, Franklin Templeton enables 24/7 trading and integration with DeFi strategies. Ondo Finance market makers will provide liquidity for the tokens, including during hours when traditional markets are closed, Bloomberg reported Wednesday.

“The next phase of digital assets isn’t just about trading crypto, but building your optimized financial life onchain,” said Sandy Kaul, Head of Innovation at Franklin Templeton. “We’re excited to combine efforts with Ondo to accelerate toward this next era of investing.”

Franklin Templeton has been exploring tokenization since 2021, when it launched the OnChain U.S. Government Money Fund (FOBXX/BENJI) as the first U.S.-registered mutual fund to trade on a public blockchain. The latest announcement expands the firm’s tokenization footprint by bringing popular ETFs onchain.

ETFs Set for Tokenization

The five funds include:

FFOG – Growth-oriented U.S. equity strategy
FLQL – Systematic large-cap equity fund

FGDL – Gold fund

FLHY – High-yield corporate bond fund

INCE – Income-focused U.S. equity strategy

Ondo Finance will acquire and hold shares of the underlying ETFs and issue tokenized representations through a special-purpose vehicle. This mirrors approaches taken by other asset managers, including WisdomTree, which has extended tokenized funds on Ethereum, Stellar, and Solana, and brokerages like Robinhood, Coinbase, and Kraken, exploring onchain equities.

Franklin Templeton’s tokenized ETFs will initially launch in Europe, Asia-Pacific, the Middle East, and Latin America. The U.S. Securities and Exchange Commission recently reaffirmed that onchain securities remain under its regulatory oversight.

Market Position and Adoption

The BENJI fund is currently the fourth-largest onchain Treasuries fund, with over $1 billion in managed assets, according to RWA.xyz. Franklin Templeton manages $1.7 trillion in assets overall, while Ondo Finance reports $620 million in total value locked (TVL).

This partnership highlights a growing trend of bringing real-world assets into crypto-native environments, combining traditional investment expertise with blockchain innovation.