Franklin Templeton Expands Tokenized ETF Offering with Ondo Finance Partnership

Franklin Templeton has announced its partnership with Ondo Finance to introduce tokenized exchange-traded funds (ETFs) for global investors.

The new product offering will enable 24/7 trading through blockchain-based infrastructure, providing a more accessible and flexible investment experience for users.

The first five ETFs to be tokenized are the Franklin Focused Growth ETF (FFOG), Franklin US Large Cap Multifactor Index ETF (FLQL), Franklin Responsibly Sourced Gold ETF (FGDL), Franklin High Yield Corporate ETF (FLHY), and Franklin Income Equity Focus ETF (INCE).

Under this structure, Ondo Finance will acquire shares of the ETFs and issue corresponding tokens through a special-purpose vehicle.

Investors will gain economic exposure to the underlying assets, including income rights, rather than direct ownership of the ETF shares.

The tokens can also be used as collateral in decentralized finance (DeFi) ecosystems, expanding their functionality beyond traditional investment use cases.