Franklin Templeton & Ondo Tokenize ETFs, Driving Institutional Adoption

Franklin Templeton, a $1.7 trillion asset manager, is partnering with Ondo Finance to launch tokenized versions of five of its ETFs, accessible via crypto wallets and platforms like Ondo Global Markets. This move signifies a major step towards bridging traditional finance and blockchain technology, offering 24/7 trading and bypassing traditional brokerage accounts. The initial rollout will focus on Europe, Asia-Pacific, and Latin America, with a US launch pending regulatory clarity. These tokenized ETFs represent rights to the economic returns of the underlying assets, held by Ondo through a special-purpose vehicle. Ondo Global Markets currently boasts over $700 million in total value locked and $12 billion in trading volume. Both firms plan educational programs for crypto-native users unfamiliar with traditional investment strategies. Ondo currently controls approximately 70% of the tokenized equity market. The partnership is viewed positively, with ONDO’s price increasing significantly following the announcement, though regulatory hurdles remain a key consideration for wider adoption.