Traditional finance giant Franklin Templeton and blockchain tokenization platform Ondo Finance announced on March 25 the onchain tokenization of five exchange-traded funds (ETFs). This collaboration marks a milestone in migrating traditional assets to the blockchain, offering investors direct access to ETF ownership via digital wallets without traditional brokerage intermediation.
Five Tokenized ETFs in Detail
The five tokenized ETFs are: 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). The product suite covers growth equities, large-cap stocks, gold, high-yield corporate bonds, and income-focused equities.
Ondo Finance emphasized: “This is the first time that tokenized ETFs managed by FT are available onchain.” Franklin Templeton continues to manage the underlying funds, while Ondo provides the tokenization framework and digital access layer.
Mechanism: From Brokerage Account to Self-Custody Wallet
Operationally, Ondo purchases the underlying assets in traditional markets, holds them in a regulated entity, and then mints blockchain-based tokens representing ownership. Investors are no longer constrained by standard market hours; they can trade continuously—including weekends—and achieve self-custody via digital wallets instead of broker-held accounts. These onchain assets can also be utilized in DeFi protocols as collateral without redemption.
Global Distribution and Regulatory Landscape
Currently, the offering targets non-U.S. jurisdictions. Investors in regions such as Latin America and Asia can gain exposure via stablecoins and digital wallets. Ondo Finance stated: “This partnership establishes a new model for distributing world-class financial products through blockchain rails while maintaining institutional standards.”
Since September 2025, Ondo Global Markets has accumulated over $700 million in total value locked (TVL) and surpassed $12 billion in transaction volume, supporting more than 70,000 holders. The launch of tokenized ETFs further solidifies its leading position in the tokenized securities market.