Franklin Templeton Partners with Ondo Finance to Launch "Tokenized ETF," Supporting 24/7 Trading in Crypto Wallets

According to Bloomberg, asset management giant Franklin Templeton announced today (25th) a strategic partnership with Ondo Finance to launch a tokenized ETF product. This collaboration allows global investors to trade U.S. stocks, gold, and bond ETFs 24/7 via crypto wallets, completely breaking the traditional exchange trading hours.

(Background: North American banking giant BMO teams up with CME and Google Cloud to launch a “tokenized cash” platform targeting 24/7 real-time settlement)

(Additional context: NYSE partners with Securitize to launch an RWA tokenized securities platform: 24/7 trading, real-time settlement, stablecoin deposits and withdrawals)

As the line between traditional finance (TradFi) and decentralized finance (DeFi) becomes completely blurred, asset liquidity will no longer be limited by geography or time. Franklin Templeton, with an asset management scale of up to $1.7 trillion, officially announced on March 25th a strategic cooperation with Ondo Finance to bring its mainstream ETF products into the on-chain world.

Product Structure: On-Chain SPV Certificates and DeFi Integration

This tokenized product adopts a rigorous legal and technical framework. Ondo Finance holds Franklin Templeton’s physical ETF shares through a Special Purpose Vehicle (SPV) and issues corresponding token certificates on-chain. While investors hold rights to the returns of these tokens rather than direct ownership of the underlying assets, these tokens have the advantages of native crypto assets:

• 24/7 Trading: Supports real-time minting, redemption, and secondary market transfers.
• DeFi Integration: These tokens can be used directly as collateral in DeFi protocols for lending or liquidity mining.
• Lower Barriers Globally: Through partnerships with wallets like Blockchain.com, investors can gain exposure to U.S. stocks without traditional brokerage accounts.

First Wave Offerings: U.S. Growth, Gold, and Fixed Income

The initial tokenized assets in this collaboration include diversified investment portfolios, specifically targeting:

• FFOG: Focused Growth ETF.
• FLQL: US Large Cap Multifactor Index ETF.
• Plus a series of equity, fixed income, and gold-related ETFs.

Notably, Franklin Templeton has long been a pioneer in the RWA space, with experience developing on-chain government money funds (BENJI); Ondo Finance currently manages approximately $2.7 billion in tokenized assets. The combination of the two is seen as a sign that the “main force” is fully entering the RWA track.

It is worth noting that the initial wave of products targets non-U.S. markets in Europe, Asia-Pacific, Middle East, and Latin America. For investors in these regions, this not only shortens the distance to U.S. stocks but also provides a “bank-grade” asset allocation channel in areas lacking traditional banking services. As U.S. regulations become clearer, if these products flow back into the U.S. market, they could trigger a full integration of traditional asset management and crypto finance.