Crypto Wallet Access to Tokenized ETFs Coming Through Franklin Templeton and Ondo Finance Partnership
Initially rolling out to investors outside the United States, these funds will deliver blockchain-based exposure to stocks, fixed income securities and precious metals via cryptocurrency wallets.
A collaboration between Franklin Templeton and Ondo Finance will bring blockchain-based versions of exchange-traded funds to market, enabling investors to gain access using cryptocurrency wallets.
This collaboration establishes an alternative distribution pathway that moves beyond traditional brokerage platforms, as investment managers explore blockchain technology for product delivery and around-the-clock market accessibility. Bloomberg initially broke the story, which Ondo subsequently verified on the X platform.
Geographic availability will initially span Europe, the Asia-Pacific region, the Middle East and Latin America, while access for United States investors hinges on achieving greater regulatory transparency.
According to the framework, Ondo will acquire Franklin Templeton ETF shares and create digital tokens via a special-purpose vehicle that conveys economic exposure to token holders, as Bloomberg reported. Token holders obtain rights to investment returns instead of direct ownership of underlying shares, enabling the tokens to serve as collateral or be incorporated into decentralized finance protocols.
The product suite is designed for investors who primarily operate using crypto wallets and stablecoins, circumventing conventional brokerage systems. Market makers associated with Ondo will supply liquidity, including during hours when traditional markets are closed.
Five funds will be part of the initial launch, covering US stocks, debt securities and gold, with token distribution handled by Ondo Global Markets, Bloomberg indicated. Neither company immediately responded to requests for additional information.
This product launch arrives after Ondo received enhanced regulatory clarity. Last December, the US Securities and Exchange Commission concluded a several-year inquiry into the firm without filing any charges.
Tokenized equities expand, but US access lags
Ondo Finance and Franklin Templeton's initiative arrives during a period of significant expansion in tokenized stock markets, with aggregate value climbing from approximately $500 million at the beginning of 2025 to nearly $950 million by March 2026, based on data from RWA.xyz.
Currently, Ondo Finance dominates this segment, representing approximately $562 million in total value, which constitutes around 60% of the entire market. Additional platforms such as Backed Finance with its xStocks offerings, along with Securitize, comprise notable yet smaller market shares.
Despite the expansion of tokenized stock products and rising aggregate valuations, market access remains constrained, with the majority of available products deployed outside American borders.
During February, Kraken unveiled tokenized equity perpetual futures through its regulated derivatives infrastructure, providing qualified non-US customers with continuous leveraged access to US equity indices, gold and individual corporations including Nvidia, Apple and Tesla.
In the previous week, Coinbase rolled out stock perpetual futures for qualified international users, broadening continuous market access to equity products alongside cryptocurrency and prediction market offerings.
Nevertheless, initiatives are progressing within the United States to establish regulated frameworks for tokenized stock products. Earlier this week, the New York Stock Exchange entered into an agreement with Securitize to investigate blockchain-powered trading of equities and ETFs, although the timeline and implementation details for US investor access remain uncertain.