Ondo Finance and Franklin Templeton Bring ETFs Onchain
Expanding access to traditional financial instruments through blockchain infrastructure is gaining traction, as Ondo Finance on March 25 announced tokenized exposure to exchange-traded funds (ETFs) in partnership with Franklin Templeton. The move places five ETFs onchain through Ondo Global Markets, introducing new distribution channels for established asset classes.
Under the arrangement, Franklin Templeton continues managing the underlying funds while Ondo supplies the tokenization framework and digital access layer. “Together, we’re tokenizing 5 Franklin Templeton ETFs across growth, large cap, fixed income, equity income, and gold available through Ondo Global Markets, the largest tokenized securities platform globally,” Ondo Finance wrote, adding:
The five products are the Franklin Focused Growth ETF (FFOG), Franklin U.S. Large Cap Multifactor Index ETF (FLQL), Franklin Responsibly Sourced Gold ETF (FGDL), Franklin High Yield Corporate ETF (FLHY), and Franklin Income Equity Focus ETF (INCE).
Beyond product design, the structure converts brokerage-style ownership into wallet-based access by issuing tokenized representations of ETF shares. Ondo acquires the underlying securities in traditional markets, holds them within a regulated vehicle, and then mints blockchain-based tokens that mirror ownership, allowing investors to hold these assets directly in crypto wallets rather than through intermediaries.
This approach removes time and access constraints associated with legacy markets. Tokenized ETFs can be traded continuously outside standard exchange hours, including weekends, while also enabling self-custody through digital wallets instead of broker-held accounts. The onchain format further allows these assets to function within decentralized finance systems, where they may be used as collateral without requiring liquidation.
Tokenization Signals Shift in Global Asset Distribution
Meanwhile, the five funds maintain exposure to distinct asset classes, including growth equities, large-cap stocks, gold, high-yield corporate bonds, and income-focused equities. The Franklin Focused Growth ETF targets innovation-driven companies, while the multifactor strategy of FLQL emphasizes quality metrics, and FGDL tracks responsibly sourced gold alongside related assets.
Additionally, the partnership introduces broader geographic accessibility for investors who may lack direct entry into U.S. brokerage infrastructure. Market participants in regions such as Latin America or Asia can gain exposure through stablecoins and digital wallets, though current deployment primarily targets non-U.S. jurisdictions due to regulatory conditions. Ondo Finance concluded:
Ondo Global Markets has accumulated more than $700 million in total value locked and over $12 billion in volume since September 2025, supporting more than 70,000 holders and reinforcing its position within tokenized securities markets.
FAQ 🧭
- Why does tokenizing ETFs matter for investors?
It expands access and liquidity while enabling blockchain-based ownership and transfers. - How does Ondo Global Markets impact ETF distribution?
It introduces blockchain rails that allow global, digital access to traditional financial products. - What assets are included in the tokenized ETF offering?
The lineup spans growth equities, large-cap stocks, bonds, income equities, and gold exposure. - Does tokenization change how these ETFs are managed?
No, Franklin Templeton continues managing the funds with unchanged investment strategies.
Source: https://news.bitcoin.com/wall-street-moves-onchain-as-franklin-templeton-and-ondo-finance-accelerate-tokenized-access-to-etfs/
