Franklin 1.7 Trillion Dollar Asset Management Bets on Ondo: Tokenized ETF Collaboration Goes Live, 24-Hour On-Chain Trading Era Arrives

Franklin Templeton, with an asset management scale of $1.7 trillion, announced a partnership with Ondo Finance to tokenize its ETFs and traditional investment products, providing on-chain access to users via blockchain. This collaboration marks a significant milestone in the deep integration of traditional financial institutions with crypto infrastructure.

Structure: SPV holds the ETF, tokens track the underlying asset value

The core platform of the partnership is Ondo Global Markets—Ondo Finance’s on-chain tokenization marketplace launched in September 2025. The operation involves Ondo establishing a Special Purpose Vehicle (SPV) to purchase Franklin’s ETF, then issuing on-chain tokens that track the underlying assets. Holders can deposit these tokens into digital wallets, gaining economic exposure to the ETF without opening a traditional brokerage account.

Currently, Ondo Global Markets’ total value locked (TVL) exceeds $620 million, with over $12 billion in total trading volume and more than 60,000 users. The main demand comes from crypto-native users seeking exposure to traditional markets but limited by cross-border account opening, currency exchange costs, or trading hours.

ETF Analysts: Tokenization is a distribution mechanism for ETFs, not a threat

Bloomberg senior ETF analyst Eric Balchunas stated that tokenization is not a competitor to ETFs but a new distribution mechanism—allowing on-chain users to enjoy low-cost passive index investing benefits. Traditional markets are limited by trading hours and intermediaries, while blockchain systems operate 24/7, enabling direct asset holding via wallets.

Major asset managers compete in deployment, regulation remains uncertain

This partnership aligns with BlackRock’s efforts in tokenized funds, indicating leading asset managers are actively testing blockchain distribution channels. Both companies also plan to launch educational programs to help crypto-native users understand long-term investment strategies.

However, the regulatory framework for tokenized securities remains incomplete. When tokens circulate across wallets rather than through brokers, regulators worldwide have yet to clarify their legal status—this will be a key factor in whether tokenized assets can achieve large-scale adoption. BlackRock CEO Larry Fink recently noted that tokenization could make investing as simple as payments, but the speed of regulatory adaptation will determine whether this vision can be realized soon.

This article originally appeared on Chain News ABMedia: Franklin’s $1.7 Trillion Asset Management Power Bets on Ondo—ETF Tokenization Launches, 24-Hour On-Chain Trading Era Begins.