Franklin Templeton Expands Access to Tokenized ETFs

Franklin Templeton has made a significant move into the world of tokenized assets by partnering with Ondo Finance to launch tokenized ETFs on a blockchain platform. This new structure will allow investors to access these funds outside of traditional market hours, providing new capabilities for investors.

The tokenized structure does not represent ownership of shares, but rather a claim on their returns. This allows investors to use decentralized finance and interact with blockchain applications in ways that were previously impossible with traditional shares.

One of the key benefits of this new structure is that it removes the need for brokerage accounts, making it easier for crypto-native investors to access these funds. The rollout will take place in regions outside of the United States, including the Asia Pacific, Europe, the Middle East, and Latin America, due to unresolved issues in the U.S. market.

However, there are challenges ahead for Franklin Templeton and the financial industry as a whole. Conventional ETFs require broker-dealers and other participants, and using blockchain-based ownership is complicated by regulatory issues such as compliance, investor identification, and oversight.