What Is the Structure of the Ondo–Franklin Templeton Offering?
Franklin Templeton is partnering with Ondo Finance to launch tokenized versions of its exchange-traded funds, enabling investors to access exposure through crypto wallets rather than traditional brokerage accounts. The move introduces a new distribution channel as asset managers test blockchain-based delivery and continuous market access.
Under the structure, Ondo will purchase shares of Franklin Templeton ETFs and issue tokens via a special-purpose vehicle that passes through the economic exposure to holders. Investors will not own the underlying shares directly but will receive rights to returns, allowing the tokens to be used as collateral or integrated into decentralized finance applications.
The products are expected to be available across Europe, Asia-Pacific, the Middle East, and Latin America, while access in the United States remains dependent on regulatory clarity. The initial rollout will include five funds covering US equities, fixed income, and gold.
How Does This Change Distribution and Market Access?
The model targets investors operating primarily through crypto wallets and stablecoins, bypassing traditional brokerage infrastructure. By embedding ETF exposure into blockchain-based tokens, the offering extends access to users who may not interact with conventional financial platforms.
Liquidity will be supported by Ondo’s market makers, including outside standard trading hours, introducing a 24/7 trading environment more consistent with crypto markets than traditional equity venues.
This approach reflects a broader shift toward always-on financial markets, where tokenized assets can be traded continuously and integrated into a wider range of financial strategies, including collateralized lending and automated portfolio management.
Investor Takeaway
How Fast Are Tokenized Equity Markets Growing?
Tokenized equity markets have expanded rapidly over the past year, with total value rising from around $500 million in early 2025 to approximately $950 million as of March 2026, according to RWA.xyz data. Ondo Finance currently leads the sector, accounting for about $562 million, or roughly 60% of the market.
Other platforms, including Backed Finance and its xStocks products, as well as Securitize, hold smaller but still meaningful shares. The growth reflects increasing demand for blockchain-based access to traditional financial instruments.
Recent product launches highlight the direction of travel. Kraken introduced tokenized equity perpetual futures for eligible non-US clients, while Coinbase launched stock perpetual futures to extend round-the-clock access to equities alongside crypto and prediction markets.
Investor Takeaway
Why Does US Access Still Lag Behind?
Despite global expansion, tokenized equity products remain largely unavailable to US investors due to regulatory constraints. The lack of clear frameworks for tokenized securities continues to limit domestic participation, even as international markets move forward.
Regulatory conditions may be improving. In December, the US Securities and Exchange Commission closed a multi-year investigation into Ondo without bringing charges, removing a potential overhang on the company’s operations.
Efforts are also underway to build compliant infrastructure within the United States. The New York Stock Exchange recently signed an agreement with Securitize to explore blockchain-based trading of stocks and ETFs, though timelines for launch remain uncertain.
Until regulatory clarity is established, the market is likely to remain geographically fragmented, with innovation and product rollout concentrated in jurisdictions outside the US.
