Ondo and Franklin Templeton Tokenize Traditional Investments to Enable 24/7 Blockchain Trading

Franklin Templeton and Ondo Finance are collaborating to tokenize traditional investment products, offering blockchain-based 24/7 access to ETFs and stocks.

• The initiative targets crypto-native investors who prefer trading outside traditional brokerage systems, using digital wallets and stablecoins.
• Ondo Global Markets, launched in September 2025, has $620 million in total value locked and over $12 billion in trading volume.

Franklin Templeton and Ondo Finance have partnered to tokenize ETFs, enabling 24/7 trading via crypto wallets. This collaboration aims to make traditional financial products accessible to a broader audience, particularly those who prefer digital ownership.

Tokenization allows real-world assets like stocks and ETFs to be converted into blockchain-based tokens. These can be held in wallets and traded without the need for traditional brokerage accounts.

The initiative includes tokenized versions of five Franklin Templeton ETFs, such as Franklin Focused Growth ETF (FFOG) and Franklin U.S. Large Cap Multifactor Index ETF (FLQL). These will be available in regions like Europe, Asia-Pacific, and Latin America, with U.S. availability pending regulatory clarity.

Ondo Finance purchases shares of the ETFs and issues tokens through a special-purpose vehicle, allowing investors to benefit from the underlying assets without owning the shares directly. This model enables the tokens to be used as collateral or integrated into decentralized finance ecosystems.

What is the market demand for tokenized ETFs?

According to market analysis, demand for tokenized ETFs is driven by users who want exposure to traditional markets without the friction of cross-border accounts or limited trading hours. The initiative has attracted over 60,000 users and $12 billion in trading volume.

What are the regulatory and competitive challenges?

Regulatory uncertainty remains a key limitation, especially in the U.S., where guidelines for on-chain fund distribution are still evolving. Ondo has secured approval in Liechtenstein for tokenized assets in 30 European countries.

Competition is growing, with other firms exploring blockchain-based fund distribution. Major players are evaluating how to retain their roles as gatekeepers in the evolving financial landscape.

What are the implications for traditional finance?

Tokenization could reduce settlement risk and improve capital efficiency by enabling near-instant settlement and reusing assets as collateral. It may also reshape how assets are distributed and accessed, challenging the traditional gatekeeper model of banks and brokers.

Despite these opportunities, the broader adoption of tokenized ETFs will depend on regulatory clarity and investor acceptance.