Franklin Templeton, one of the world's largest asset managers with over $1.7 trillion in assets under management, has entered a strategic partnership with decentralized finance platform Ondo Finance (ONDO) to tokenize a suite of its exchange-traded funds (ETFs). This collaboration marks a significant step in bridging traditional finance with blockchain infrastructure.
Five specific Franklin Templeton ETFs will be tokenized and made available for 24/7 trading via cryptocurrency wallets through Ondo's Global Markets platform. The ETFs include the 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). These cover strategies from growth stocks and large-cap companies to fixed-income and gold.
Under the agreement, Franklin Templeton will remain the asset manager, while Ondo Finance provides the tokenization technology and digital distribution layer. The initiative aims to improve global investor accessibility, offer shorter settlement periods, and increase liquidity ceilings for these traditional investment products.
The pilot launch is slated for Europe, Asia-Pacific, the Middle East, and Latin America, with a U.S. launch pending regulatory approval. Ondo Finance, founded in 2021 and backed by former Goldman Sachs executives, is the largest provider of blockchain-based investment products with a Total Value Locked (TVL) exceeding $2.5 billion. The partnership underscores a growing institutional trend, following similar moves by giants like BlackRock and JPMorgan Chase, to integrate real-world assets (RWA) onto blockchain networks following regulatory developments like the GENIUS Act.
