Wall Street is accelerating its move onchain. On March 25, 2026, Ondo Finance announced a partnership with asset management giant Franklin Templeton to tokenize five traditional ETFs and bring them onto the blockchain through the Ondo Global Markets platform. This marks the first time Franklin Templeton-managed ETFs are available in a tokenized format on-chain, signaling a major shift in how institutional-grade assets are distributed globally.
The Partnership: Five ETFs Across Major Asset Classes
The tokenized products include: Franklin Focused Growth ETF (FFOG) (innovation-driven growth stocks), Franklin U.S. Large Cap Multifactor Index ETF (FLQL) (quality and value factors), Franklin Responsibly Sourced Gold ETF (FGDL) (responsibly sourced gold and related assets), Franklin High Yield Corporate ETF (FLHY) (high-yield corporate bonds), and Franklin Income Equity Focus ETF (INCE) (income-focused equities). Each fund continues to be managed by Franklin Templeton with unchanged investment strategies.
Tokenization Mechanics: From Brokerage Accounts to Wallets
The new structure converts traditional brokerage-style ownership into wallet-based accessibility. Ondo Finance purchases the underlying securities in traditional markets, holds them within a regulated entity, and then mints blockchain-based tokens that represent ownership. Investors can hold these assets directly in crypto wallets rather than through intermediaries. This eliminates time and access constraints associated with legacy markets: tokenized ETFs can trade continuously outside standard market hours, including weekends, and enable self-custody. Furthermore, the onchain format allows these assets to operate within decentralized finance (DeFi) systems, where they can be used as collateral without the need to sell.
Global Distribution: Unlocking Access for Underserved Markets
The partnership also provides broader geographic accessibility for investors who may lack direct access to U.S. brokerage infrastructure. Participants in regions such as Latin America or Asia can gain exposure via stablecoins and digital wallets, though the current rollout targets primarily non-U.S. jurisdictions due to regulatory conditions. Ondo Finance stated: "Together, we are tokenizing five Franklin Templeton ETFs across growth, large cap, fixed income, equity income, and gold — available through Ondo Global Markets, the world's largest tokenized securities platform." The firm added that this partnership establishes a new model for distributing world-class financial products through blockchain rails while maintaining institutional standards.
Ondo Global Markets: Rapid Growth in Tokenized Securities
Ondo Global Markets has accumulated over $700 million in total value locked (TVL) and more than $12 billion in volume since September 2025, supporting over 70,000 holders. The addition of Franklin Templeton's ETFs further strengthens its position as a leading platform in the tokenized securities space. This development is expected to encourage other asset managers to follow suit, accelerating the migration of traditional financial assets onto blockchain infrastructure.
In essence, tokenized ETFs offer investors higher liquidity, broader access, and more flexible ownership while preserving the traditional management framework of the underlying assets. The partnership between Ondo Finance and Franklin Templeton represents a concrete step toward a more open, efficient, and globally connected financial system.
Frequently Asked Questions
- Why is ETF tokenization important for investors?
It expands access and liquidity while enabling blockchain-based ownership and transfers. - How does Ondo Global Markets impact ETF distribution?
It introduces blockchain rails that enable global, digital access to traditional financial products. - What assets are included in the tokenized ETF offering?
The lineup includes growth stocks, large-cap stocks, bonds, income equities, and gold exposure. - Does tokenization change how these ETFs are managed?
No, Franklin Templeton continues to manage the funds with unchanged investment strategies.