Franklin Templeton Teams with Ondo Finance on Tokenized ETF Rollout

Franklin Templeton has entered into a partnership with Ondo Finance to bring tokenized versions of its exchange-traded funds (ETFs) to international markets. The new products will allow investors to trade the ETFs 24/7 through crypto wallets, bypassing traditional brokerage accounts.

The tokenization process involves Ondo purchasing shares of Franklin Templeton's ETFs directly and then issuing tokens that represent ownership rights to holders. This structure allows the tokens to serve as collateral or within decentralized finance applications.

Five funds are initially lined up for tokenization, including a growth-oriented US equity strategy, a systematic large-cap equity fund, and a gold fund. A high-yield corporate bond fund and an income-focused US equity strategy also make the list.

Ondo's market makers will provide liquidity for the tokens at all hours, giving investors continuous access to the markets without trading restrictions tied to standard ETFs.