Franklin Templeton to Launch Blockchain-Based ETFs

Franklin Templeton to release tokenized ETFs with Ondo Finance.

Asset manager Franklin Templeton, in partnership with Ondo Finance, will release tokenized versions of its ETFs, which will be directly accessible through cryptocurrency wallets.

We’re excited to announce that Ondo has partnered with Franklin Templeton (@FTDA_US), one of the world’s largest asset managers with $1.7T AUM.

Together, we’re bringing exposure to Franklin Templeton-managed investment products onchain through Ondo Global Markets. pic.twitter.com/vY2AqbiMm7

— Ondo Finance (@OndoFinance) March 25, 2026

Under the agreement, Ondo will acquire the company’s funds and issue tokens based on them through a separate firm.

Product holders will gain rights to income, but not to the underlying shares — the structure allows digital assets to be used as collateral or integrated into DeFi applications. Ondo’s market makers will also provide liquidity, even during hours when traditional exchanges are closed.

The initiative targets a growing class of investors who operate exclusively through wallets and stablecoins, without direct interaction with the stock market.

Initially, Franklin Templeton and Ondo will tokenize five funds: FFOG, FLQL, FGDL, FLHY, and INCE. These include high-yield corporate stocks, primarily from the US.

“The selected ETFs represent a good mix of different types of investments. This gives us a great opportunity to test what truly interests a new audience,” said Sandy Kaul, head of innovation at the asset manager.

As of February, Franklin Templeton’s assets were valued at approximately $1.7 trillion. Ondo Finance manages tokenized products worth about $2.7 billion.

According to RWA.xyz, since 2025, the market value of real-world digital assets has grown by approximately 360% to $26.5 billion.

However, according to Ondo Finance President Ian De Bode, regulatory uncertainty in the US has slowed adoption, as officials have yet to establish clear guidelines for tokenized ETFs.

Several market participants point to the complexity of integrating blockchain with the traditional financial ecosystem, which relies on broker-dealers and authorized participants for issuing and redeeming shares. Structuring products to accommodate cryptocurrency wallets while complying with securities laws also remains a significant challenge.

In March, the US Securities and Exchange Commission approved Nasdaq’s proposal to trade tokenized shares.