Franklin Templeton and Ondo Finance are preparing tokenized versions of Franklin ETFs. The aim is to let users can access through crypto wallets instead of standard brokerage accounts. The rollout is intended to give users a way to hold on-chain versions of fund exposure tied to U.S. stocks, fixed income, and gold.
The California, U.S.-based investment management firm had about $1.71 trillion in assets under management as of January 31, 2026. Bloomberg reported on Wednesday that Ondo had roughly $2.7 billion in tokenized assets outstanding.
The first launch will take place outside the United States. Franklin said the products will start in Europe, Asia-Pacific, the Middle East, and Latin America. The company added that any U.S. launch depends on more regulatory clarity around how third parties can distribute registered funds on-chain.
That point places the announcement within the larger effort to move traditional products onto blockchain rails without stepping outside current securities rules.
Franklin Templeton and Ondo move ETFs onto blockchain rails
Franklin Templeton is partnering with Ondo Finance to bring tokenized versions of its ETFs to crypto wallets. The first set covers five funds: Franklin Focused Growth ETF, Franklin U.S. Large Cap Multifactor Index ETF, Franklin Responsibly Sourced Gold ETF, Franklin High Yield Corporate ETF, and Franklin Income Equity Focus ETF. Together, the lineup gives users access to equity, bond, and gold exposure through one tokenization framework.
The firms are presenting the launch as a way to reach users who already hold assets in self-custody and want access to standard market products without opening a brokerage account.
Franklin innovation head Sandy Kaul said, “These ETFs represent a good mix of different exposures.”
That comment shows the firm is using a varied first batch rather than limiting the launch to one asset class or one region.
Franklin Templeton has already built digital asset products before this ETF move. Its Franklin OnChain U.S. Government Money Fund, known as FOBXX, has operated with blockchain-based recordkeeping since 2021.
Franklin also said in February that it expanded a strategic collaboration with Binance around an institutional off-exchange collateral program, as we reported. Those steps show the firm has been testing blockchain distribution and collateral tools before adding tokenized ETF access with Ondo.
How the tokenized ETF structure works
Ondo Global Markets issues blockchain-based tokens that are designed to track the economic value of underlying public securities. Ondo’s documentation says these tokens aim to give holders the same economic exposure they would receive from the underlying asset, with dividends reinvested after applicable withholding tax.
At the same time, the tokens are not the ETF shares themselves, and holders do not receive direct title, voting rights, or other shareholder rights in the underlying fund.
Ondo also says the structure uses a bankruptcy-remote special purpose vehicle, daily asset attestations, overcollateralization, and a third-party security interest. That design tries to separate the token from issuer balance-sheet risk while keeping the exposure linked to the underlying assets.
Market coverage on Wednesday described the setup as one in which Ondo buys ETF shares through a special purpose vehicle and issues tokens that represent return rights, not direct ownership of the ETF units.
The tokens are also designed for wallet use beyond simple holding. Ondo says its tokenized securities are transferable and can be used in DeFi applications that support them, including as collateral for lending or in perpetual futures systems. Ondo’s public materials say trading generally runs 24 hours a day, five days a week, while transfers can happen around the clock.
Launch starts outside the United States
The first phase will target non-U.S. markets. Bloomberg said the products will open in Europe, Asia-Pacific, the Middle East, and Latin America. Franklin said U.S. access will wait until there is more clarity on the rules for third-party onchain distribution of registered funds. That means the firm is starting in jurisdictions where tokenized access can move faster while it waits for a firmer U.S. path.
Ondo’s public materials also show that distribution remains subject to location-based restrictions. Its MetaMask launch in February brought more than 200 tokenized U.S. securities into the wallet for eligible non-U.S. users, but the company said the assets were not available in the United States and several other markets.
Ondo’s documentation adds that direct access to buy and sell through its platform requires know-your-customer checks, and some jurisdictions limit access to qualified or professional investors.
That regulatory line matters because tokenized securities sit between two systems. The underlying ETFs remain conventional regulated products, while the onchain wrapper changes how users hold, transfer, and post the exposure. U.S. regulators have started to address tokenized securities in other contexts.
On March 5, the Federal Reserve, FDIC, and OCC said banks would not face extra capital charges for tokenized securities compared with traditional securities, using what they called a technology-neutral approach.
Ondo expands a fast-growing tokenized market
The Franklin deal arrives as Ondo keeps growing its tokenized securities platform. In January, Ondo said it had passed $2.5 billion in total value locked across its tokenized real-world asset products and more than $500 million across tokenized stocks.
In March, market coverage tied to new listings said Ondo Global Markets had moved beyond 250 tokenized stocks and ETFs and had crossed $600 million in value on that platform. Bloomberg’s March 25 report placed Ondo’s total tokenized assets at about $2.7 billion.
Ondo has also widened distribution through large crypto platforms. MetaMask added direct access to Ondo tokenized U.S. stocks and ETFs in February for eligible users outside the U.S. Ondo later added more than 60 new tokenized assets, including fresh ETF listings, as the company pushed past 250 onchain securities. Those steps show why Franklin Templeton chose a partner that already had wallet, exchange, and DeFi links in place before this ETF launch.
Separately, Morgan Stanley has also moved deeper into digital asset products after filing for a proposed Bitcoin ETF through Morgan Stanley Investment Management. The filing names BNY Mellon and Coinbase in key custody and administration roles, showing that large financial firms are expanding crypto offerings across both traditional ETF structures and onchain distribution models.
Moreover, Eric Balchunas said Morgan Stanley’s spot Bitcoin ETF could launch soon after the NYSE issued a listing notice for the fund, which often signals a near-term debut.