Franklin Templeton and Ondo Finance Launch 24/7 Tokenized ETFs Traded via Ethereum for crypto users

Franklin Templeton, the global asset manager overseeing approximately $1.7 trillion in assets, has partnered with blockchain firm Ondo Finance to launch a groundbreaking initiative offering tokenized versions of traditional exchange-traded funds (ETFs).

“Franklin Templeton is launchingtwo exchange-traded funds that can be traded directly through crypto wallets around the clock”

AMBCrypto

The ETFs trade 24/7 directly through crypto wallets, enabling access without traditional brokerage accounts.

AMBCrypto

The initial offering includes five ETFs spanning various asset classes, including Franklin Templeton's high-yield corporate ETF, focused growth ETF, and responsibly sourced gold ETF.

This collaboration represents a significant convergence of traditional finance and blockchain technology.

The move expands Ondo Global Markets' existing $620 million in total value locked and $12 billion in trading volume across 60,000 users.

The technical infrastructure leverages blockchain networks, primarily Ethereum and its layer-2 solutions, to create a fully onchain trading environment.

Under the hybrid structure, Ondo purchases shares of Franklin Templeton ETFs and issues blockchain-based tokens through a special-purpose vehicle.

Blockonomi

The tokens transfer economic exposure to holders rather than granting direct ownership of underlying shares.

This allows investors to receive rights to fund returns while using tokens as collateral in DeFi applications.

Settlement occurs directly on-chain, reducing reliance on intermediaries and speeding up transaction cycles.

Sandy Kaul emphasized the focus on "high-quality, well-understood investment strategies" to anchor the space.

The launch reflects an accelerating institutional trend of blockchain adoption in traditional finance.

“Securities Print Share To: Franklin Templeton is partnering with Ondo Finance to offer tokenized versions of its ETFs that trade around the clock through crypto wallets, bypassing the brokerage accounts and limited trading hours that have defined fund investing for decades”

Bloomberg Law News

Major asset managers are progressively digitizing capital markets and validating blockchain technology's benefits.

Tokenized real-world assets on Ethereum alone now approach $13.6 billion in market capitalization.

Franklin Templeton's involvement provides immense credibility to the tokenization movement.

This technology is transitioning from experimental to mainstream adoption.

Similar moves by BlackRock and WisdomTree indicate a collective movement toward digitizing capital markets.

For traditional investors, tokenized ETFs offer a familiar entry point into digital asset infrastructure.

Crypto-native investors gain access to yield-generating traditional assets without leaving the blockchain environment.

CoinDesk

Self-custody wallet integration enhances investor control and security compared to traditional accounts.

Educational programs will focus on long-term portfolio construction and risk management for crypto-native investors.

Franklin Templeton emphasizes maintaining "standards and outcomes investors expect" while expanding access.

The focus is on helping investors access diversified strategies and integrate traditional investments on-chain.

Regulatory compliance across multiple jurisdictions presents complex hurdles, especially in the United States.

“Franklin Templeton is teaming with Ondo Finance to bring tokenized versions of its exchange-traded funds onchain, allowing investors to access them through crypto wallets”

Cointelegraph

Legal rights of token holders versus traditional shareholders require clear definition.

Cointelegraph

Market infrastructure for primary creation and redemption needs further development.

The GENIUS Act of July 2025 established clear requirements for stablecoin issuers with 100% reserve mandate.

Initial rollout will be across Europe, Asia-Pacific, Middle East and Latin America, excluding U.S.

The fusion of regulated financial products with decentralized networks continues to accelerate globally.