Franklin Templeton Tokenizes 5 ETFs via Ondo Finance
Franklin Templeton partners with Ondo Finance to launch five tokenized ETFs for 24/7 crypto wallet trading, bringing $1.7 trillion in AUM closer to DeFi.
Franklin Templeton, the $1.7 trillion asset manager, has selected Ondo Finance to tokenize five of its ETFs for around-the-clock trading through crypto wallets.
What Happened
On March 25, 2026, Franklin Templeton confirmed a partnership with Ondo Finance to bring five ETFs on-chain through Ondo Global Markets. The tokenized products include the Franklin Focused Growth ETF, Franklin Income Equity Focus ETF, Franklin High Yield Corporate ETF, Franklin Responsibly Sourced Gold ETF, and Franklin U.S. Large Cap Multifactor Index ETF.
Under the arrangement, Ondo purchases shares in each fund and issues corresponding tokens through a special-purpose vehicle. Token holders receive rights to the return stream rather than direct ownership of underlying shares, allowing the tokens to serve as collateral or be used within DeFi applications. Trading will operate 24/7 rather than following traditional market hours.
Why It Matters
Franklin Templeton is the largest asset manager by AUM to directly support on-chain ETF distribution. The deal positions Ondo Finance as the leading platform for institutional-grade tokenized securities, a market that has grown from approximately $500 million in early 2025 to $950 million by March 2026.
The initial rollout covers Europe, Asia-Pacific, the Middle East, and Latin America. U.S. availability depends on additional regulatory clarity about distributing registered funds on-chain. Bloomberg reported the news, noting that the partnership reflects growing institutional appetite for DeFi infrastructure following the SEC's March 17 commodity classification of 16 major tokens.
What to Watch
The ONDO token rose 1.27% to $0.26 following the announcement, with 24-hour trading volume jumping 16.23% to $85.14 million. Investors should monitor whether U.S. regulatory approval follows for on-chain ETF distribution and whether competing asset managers accelerate their own tokenization strategies. Ondo already integrates with BlackRock's BUIDL fund, which holds over $1 billion in tokenized treasuries.
Key Takeaways
Franklin Templeton's entry into tokenized ETF distribution through Ondo Finance marks a milestone for the RWA sector. As traditional finance continues to merge with on-chain infrastructure, the boundary between Wall Street and DeFi is becoming increasingly difficult to define.
