Franklin Templeton and Ondo Finance launched a partnership to tokenize five exchange-traded funds for blockchain distribution. Ondo Global Markets expands its tokenized securities platform with these funds, covering equities, fixed income, and gold. Franklin Templeton manages over $1.7 trillion in assets globally.
Five Tokenized ETFs: What's Included
The partnership introduces tokenized versions of five Franklin Templeton ETFs on Ondo Global Markets: FFOG, FLQL, FGDL, FLHY, and INCE. Each ETF targets different asset classes, including growth equities, large-cap stocks, fixed income, and gold. Franklin Templeton continues to manage the underlying ETFs, while Ondo provides tokenization infrastructure and digital distribution via blockchain networks. Investors gain exposure through tokens linked to underlying ETF performance, without holding shares directly.
How the SPV Structure Works
The structure uses a special-purpose vehicle (SPV). Ondo purchases ETF shares through the SPV and issues blockchain-based tokens. These tokens pass through economic exposure without direct share ownership. Ondo said the tokens will be available across Europe, Asia-Pacific, the Middle East, and Latin America. U.S. availability depends on regulatory conditions.
The model targets users operating through crypto wallets and stablecoins, removing reliance on traditional brokerage accounts. Liquidity support comes from Ondo market makers, enabling trading outside standard market hours and continuous access aligned with crypto market infrastructure.
Market Scale and Competition
According to platform data, Ondo Global Markets has processed over $12 billion in volume and reports more than 70,000 holders since launch. Tokenized equity markets have grown over the past year, with RWA.xyz data showing total value rising from about $500 million to roughly $950 million. Ondo Finance holds the largest market share. Other participants include Backed Finance and Securitize, which operate smaller tokenized asset offerings.
Additional platforms have introduced related products: Kraken launched tokenized equity perpetual futures for non-U.S. users, and Coinbase introduced stock perpetual futures for continuous trading access. Regulatory limits still restrict U.S. access to tokenized equities. However, the SEC previously closed an investigation into Ondo without charges. The New York Stock Exchange also signed an agreement with Securitize to explore blockchain-based trading systems.