Ondo Finance has announced a partnership with Franklin Templeton to tokenize five ETFs across growth (FFOG), large-cap (FLQL), fixed income (FLHY), equity income (INCE), and gold exposure (FDGL) through Ondo Global Markets.
Franklin Templeton retains asset management responsibility while Ondo provides tokenization infrastructure and blockchain distribution.
Ondo and Franklin Templeton plan to launch education programs targeting crypto-native users unfamiliar with traditional portfolio strategies, according to Coindesk.
Ondo Global Markets has accumulated over $700 million in total value locked and powered $12 billion in cumulative trading volume across 70,000+ holders since launching in September 2025. According to RWA.xyz data, the broader tokenized equity market stands at approximately $950 million as of March 2026, meaning Ondo controls roughly 70% of the category – more than all competing platforms combined.
The growth trajectory reflects institutional demand. The tokenized securities market expanded from approximately $500 million in early 2025 to $950 million by March 2026, with Franklin Templeton's entry representing the largest asset manager to directly support on-chain distribution.
Structural Advantages and Market Access
Tokenized ETFs operate 24/7 on blockchain rails, compared to traditional markets constrained by geographic trading hours and intermediary infrastructure. Users gain exposure through direct wallet ownership rather than brokerage accounts, reducing friction for cross-border capital and eliminating currency conversion delays.
Ondo Global Markets enables blockchain-based tokens backed by real-world assets that track underlying securities and can be held in digital wallets. This architecture appeals to crypto-native users seeking traditional asset exposure without opening conventional brokerage accounts.
Regulators have yet to fully establish how tokenized securities should be treated when crossing borders and wallet boundaries rather than moving through traditional settlement systems. The Franklin Templeton partnership creates a test case for institutional-scale tokenization under existing regulatory frameworks.
Competition in tokenized securities is building, with BlackRock and other major financial institutions exploring on-chain distribution models. Ondo's market dominance positions it as the primary platform for traditional asset managers seeking blockchain distribution.
