Franklin Templeton has partnered with Ondo Finance to issue tokenized versions of its exchange-traded funds onchain, enabling investors to access them directly through crypto wallets. The collaboration creates a new distribution channel beyond traditional brokerages and offers potential 24/7 access to ETF exposure via blockchain rails, a move first reported by Bloomberg and later confirmed by Ondo on X.
The products will initially roll out across Europe, Asia-Pacific, the Middle East and Latin America, with U.S. availability contingent on regulatory clarity. Under the structure, Ondo will purchase shares of Franklin Templeton ETFs and issue tokens through a special-purpose vehicle that conveys economic exposure to token holders. Holders receive rights to returns rather than direct ownership of the underlying shares, allowing the tokens to be used as collateral or integrated into DeFi applications.
The offering targets investors who operate primarily through crypto wallets and stablecoins, bypassing traditional brokerage infrastructure. Liquidity will be supplied by Ondo’s market makers, including outside standard trading hours. Bloomberg reported the initial rollout will include five funds spanning U.S. equities, fixed income and gold, distributed through Ondo Global Markets. Both firms did not immediately respond to requests for more information.
The launch follows increased regulatory clarity for Ondo: in December the U.S. Securities and Exchange Commission closed a multi-year investigation into the company without bringing charges.
Tokenized equity markets have expanded rapidly over the past year. RWA.xyz data show total value rising from roughly $500 million in early 2025 to about $950 million by March 2026, with Ondo Finance accounting for roughly $562 million—about 60% of the market. Other platforms, such as Backed Finance (xStocks) and Securitize, hold smaller shares.
Despite growth, most tokenized equity offerings remain concentrated outside the United States. In February, Kraken launched tokenized equity perpetual futures for eligible non-U.S. clients, offering 24/7 leveraged exposure to U.S. indexes, gold and stocks like Nvidia, Apple and Tesla. Coinbase recently introduced stock perpetual futures for eligible non-U.S. users, extending round-the-clock access to equities alongside crypto markets. Meanwhile, the New York Stock Exchange signed an agreement with Securitize to explore blockchain-based trading of stocks and ETFs, though timing and U.S. availability for such products remain unclear.