Asset management giant Franklin Templeton has partnered with Ondo Finance to tokenize five of its exchange-traded funds (ETFs), allowing investors to access U.S. equities, bonds, and gold through blockchain-based tokens that can trade 24/7 via crypto wallets. The move marks a major step in bridging traditional finance and crypto, giving users exposure to real-world assets without relying on traditional brokerage accounts or limited market hours.
Five Major ETFs Move Onchain
The partnership will tokenize a diverse set of funds across multiple asset classes.
Tokenized assets include:
- Franklin Focused Growth ETF (FFOG) – growth-focused U.S. equities
- Franklin U.S. Large Cap Multifactor ETF (FLQL) – large-cap stocks
- Franklin Responsibly Sourced Gold ETF (FGDL) – gold exposure
- Franklin High Yield Corporate ETF (FLHY) – corporate bonds
- Franklin Income Equity Focus ETF (INCE) – income-generating equities
These funds will now be accessible as blockchain-based tokens representing exposure to the underlying assets.
How Tokenization Works
Ondo Finance will handle the tokenization layer while Franklin Templeton continues managing the funds.
Structure includes:
- Ondo purchases ETF shares in traditional markets
- Blockchain tokens are issued representing those assets
- Investors gain economic exposure (not direct share ownership)
- Tokens can be held in crypto wallets instead of brokerage accounts
This model allows traditional financial products to operate on blockchain rails.
24/7 Trading Changes Everything
One of the biggest advantages of tokenization is removing traditional market limitations.
Key benefits include:
- Around-the-clock trading, including nights and weekends
- No need for brokerage accounts
- Global access for crypto-native investors
- Fractional ownership and increased accessibility
This opens the door for a new class of investors who operate entirely within crypto ecosystems.
DeFi Integration Unlocks New Use Cases
Tokenized ETFs are not just for trading—they can also be used within decentralized finance.
Potential use cases:
- Using tokenized ETFs as collateral in DeFi protocols
- Integrating traditional assets into lending and borrowing markets
- Creating hybrid portfolios combining crypto and equities
- Expanding liquidity across blockchain ecosystems
This adds a new layer of functionality not available in traditional finance.
Global Rollout, U.S. Still Waiting
The initial launch will focus on international markets.
Launch regions include:
- Europe
- Asia-Pacific
- Middle East
- Latin America
Access in the United States will depend on further regulatory clarity around tokenized securities.
Why This Matters
This development signals a major shift in how financial markets operate:
- Traditional assets are moving onto blockchain infrastructure
- Tokenization is breaking down barriers to global investing
- 24/7 markets could replace limited trading hours
- DeFi and TradFi are rapidly merging into one system
As major players like Franklin Templeton enter the space, tokenized finance is quickly evolving from an experiment into a core part of the global financial system.
