Franklin Templeton has formed a partnership with Ondo Finance to develop onchain tokenized exchange-traded funds (ETFs) that will enable investors to access their products through cryptocurrency wallets.
The partnership provides investors with a new method to invest in traditional financial products which they can access without opening brokerage accounts. Users can access tokenized ETFs through blockchain-based platforms which provide direct access to the ETFs.
Tokenized ETFs expand global access
The products will become available for purchase throughout Europe and Asia-Pacific and the Middle East and Latin America. The United States market will open once regulatory requirements become clear.
Ondo Finance will use its structure to buy Franklin Templeton ETFs while creating blockchain-based tokens through a special-purpose vehicle. The tokens in this system offer users economic rights to the base assets but do not permit them to own the assets themselves.
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The system enables investors to earn returns while they use their tokens in both decentralized finance (DeFi) applications and as collateral.
The first rollout will introduce five funds which will include US equities and fixed income and gold investments.
Targeting crypto-native investors
The initiative targets investors who conduct their business through crypto wallets and stablecoins.
The platform provides market access through its direct trading system which enables users to conduct trades beyond regular trading times. Market makers will supply liquidity to the system which enables users to trade almost continuously.
The partnership demonstrates how financial institutions work to connect blockchain technology with their current financial systems while attracting new customers.
Growing competition in tokenized markets
The launch exists at a time when tokenized equity markets experience their most significant growth ever. The sector has expanded from approximately $500 million in early 2025 to about $950 million by March 2026 according to data from RWA.xyz.
The tokenized asset market deals with multiple platforms which include Backed Finance and Securitize but Ondo Finance maintains its position as the market leader. Crypto exchanges are also moving into the space. Both Kraken and Coinbase introduced tokenized equity products which provide non-US users continuous access to traditional markets.
Regulatory limits in the US
Tokenized equities are not accessible to US investors because of existing regulatory restrictions despite worldwide market expansion. The New York Stock Exchange and Securitize have established a partnership to test blockchain stock and ETF trading which can lead to new technological advancements.
Franklin Templeton implemented its blockchain strategy through this operation which followed its previous work to create tokenized money market funds and test onchain asset management methods. Ondo Finance has extended its activities into tokenized finance through multiple areas which include its regulatory advancement after the US Securities and Exchange Commission concluded its investigation into the company in late 2025 without taking enforcement measures against them.
The current financial landscape demonstrates increasing interaction between traditional banking systems and cryptocurrency companies as institutions examine the potential of blockchain technology to provide financial services.
