Franklin Templeton is set to revolutionize crypto-based asset management by partnering with Ondo Finance to offer tokenized versions of its exchange-traded funds (ETFs) through crypto wallets.
Initially available to non-US investors in Europe, Asia-Pacific, the Middle East, and Latin America, the initiative aims to leverage blockchain technology for broader market access and 24/7 liquidity. The tokens will provide economic exposure to traditional assets like equities, bonds, and gold, with liquidity facilitated by Ondo’s market makers.
At press time, Bitcoin was trading at , while Ethereum held steady at . The move comes amid a surge in tokenized equity markets, which have grown from $500 million to approximately $950 million in the past year.
"This partnership opens a new distribution channel beyond traditional brokerage accounts," said a spokesperson for Ondo Finance.
Under the structure, Ondo will purchase shares of Franklin Templeton ETFs and issue tokens through a special-purpose vehicle. Investors will receive rights to returns rather than the underlying shares, enabling the tokens to be used as collateral or integrated into decentralized finance (DeFi) applications.
The initial rollout will include five funds spanning US equities, fixed income, and gold. These tokens will be distributed through Ondo Global Markets, providing an alternative to conventional brokerage infrastructure.
The collaboration follows increased regulatory clarity for Ondo Finance, which saw the US Securities and Exchange Commission close a multi-year investigation without charges in December. This development likely paved the way for the new venture, which also aligns with Binance's recent tokenization ventures with Franklin Templeton.
As traditional finance and crypto continue to converge, this initiative marks a significant step in bridging the gap between legacy asset management and blockchain technology.
Looking ahead, investors should watch for further regulatory developments and the potential expansion of such offerings to US markets as clarity improves. The success of this partnership could set a precedent for other asset managers to explore similar blockchain-based delivery models.
