Franklin Templeton Partners with Ondo Finance to Launch Tokenized ETFs for 24/7 Crypto Wallet Trading – RWA News

Franklin Templeton has partnered with Ondo Finance to launch tokenized versions of five of its ETFs that can be traded 24/7 directly through crypto wallets. The initiative, announced in the last few hours, bypasses traditional brokerage accounts and limited market hours, marking a significant step in bringing institutional-grade investment products on-chain.

Details of the Tokenized ETF Launch The partnership involves tokenizing five Franklin Templeton ETFs: a growth-oriented U.S. equity strategy (FFOG), a systematic large-cap equity fund (FLQL), a gold fund (FGDL), a high-yield corporate bond fund (FLHY), and an income-focused U.S. equity strategy (INCE).

Under the arrangement, Ondo Finance purchases shares of the Franklin ETFs and issues tokenized versions through a special-purpose vehicle. Investors receive tokens that pass through the financial exposure and returns of the underlying ETFs, rather than direct ownership of the shares. The tokens can be held in crypto wallets, traded 24/7, and used as collateral or in DeFi applications.

Trading is supported by Ondo’s market makers, ensuring liquidity even outside traditional stock and bond market hours. The products will initially be available in Europe, Asia-Pacific, the Middle East, and Latin America, with U.S. availability depending on further regulatory clarity for on-chain distribution of registered funds.

Franklin Templeton manages approximately $1.7 trillion in assets, while Ondo Finance currently has roughly $2.7 billion in tokenized assets outstanding.

Why This Partnership Is Significant Franklin Templeton is one of the world’s largest and most respected asset managers. Its decision to tokenize ETFs and make them available in crypto wallets represents a major endorsement of tokenization by traditional finance. The partnership combines Franklin Templeton’s product expertise with Ondo Finance’s tokenization infrastructure, creating a bridge between conventional investment products and blockchain technology.

The 24/7 trading capability is a key innovation. Traditional ETFs are limited to stock exchange hours, creating overnight and weekend gaps. Tokenized versions in crypto wallets allow continuous trading, instant settlement, and global access without the need for brokerage accounts or cross-border infrastructure.

Implications for Tokenized Real World Assets This launch expands the range of tokenized products available to investors. Tokenized ETFs provide exposure to U.S. equities, gold, and fixed income in a form that is fractional, liquid, and composable in DeFi. The ability to use tokens as collateral or in yield strategies adds capital efficiency that traditional ETFs cannot match.

For the broader RWA ecosystem, the partnership demonstrates that major asset managers are actively moving into tokenization. This increases credibility, attracts more institutional capital, and accelerates the growth of tokenized assets beyond treasuries and credit into equities and commodities.

Retail participants benefit from easier access to high-quality investment products through familiar crypto wallets. Institutional investors gain new tools for portfolio construction and liquidity management.

Practical Considerations for Participants The tokenized ETFs are in early rollout, but interested users can prepare as follows:

1. Wallet readiness — Ensure a compatible crypto wallet (MetaMask, Phantom, or similar) is set up on supported chains.
2. Monitor availability — Track updates from Franklin Templeton and Ondo Finance for launch dates in your region.
3. Understand token mechanics — Tokens represent rights to returns rather than direct ownership of ETF shares.
4. Assess use cases — Consider how tokenized ETFs can be used for collateral, DeFi strategies, or portfolio diversification.
5. Stay informed — Follow rwa.xyz for TVL changes and new tokenized product listings.

These steps help users evaluate and engage with the new products responsibly.

Risks and Limitations Tokenized ETFs carry market, liquidity, and smart contract risks. Regulatory clarity in the U.S. is still evolving, which may delay or limit availability. The special-purpose vehicle structure means investors own rights to returns rather than the underlying shares, which has legal and tax implications. Always review offering documents and use audited platforms.

Outlook Franklin Templeton’s partnership with Ondo Finance to launch tokenized ETFs for 24/7 crypto wallet trading is a landmark development for the RWA sector. It demonstrates that leading traditional asset managers are actively embracing tokenization, which could accelerate the transition from billions to trillions in market size.

RWA News Network will continue covering major institutional tokenization initiatives, product launches, and their impact on the tokenized real world assets market.

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