Ondo Finance said it will work with Franklin Templeton to bring tokenized versions of traditional investment products to blockchain users, a move that reflects a broader push to merge conventional finance with crypto infrastructure.
The effort focuses on Ondo Global Markets, a platform that issues blockchain-based tokens backed by real-world assets such as publicly traded stocks and exchange-traded funds. These tokens track the value of underlying securities and can be held in digital wallets, allowing users to gain exposure without opening a trading account.
Franklin Templeton, which manages approximately $1.7 trillion in assets, will provide investment products and support the rollout. The companies also plan to launch educational programs aimed at crypto-native users who may be unfamiliar with long-term portfolio strategies.
The partnership builds on a growing trend of major asset managers testing blockchain rails to distribute products. Franklin Templeton has already developed tools for digital assets, while others, including BlackRock, have explored tokenized funds and onchain settlement.
Launched in September 2025, Ondo Global Markets reports a total value of more than $620 million and a trading volume of more than $12 billion among 60,000 users. The company says demand comes from users who want exposure to traditional markets without the friction of cross-border accounts, currency conversions or trading hours.
The consequences extend beyond convenience. Tokenization can reshape how assets move and who has access to them. Traditional markets run on limited hours and with layers of intermediaries. Blockchain systems, on the other hand, operate 24 hours a day and enable direct ownership through wallets.
Still, the shift will test how far tokenized security can go within existing rules. Regulators have yet to fully address how these instruments should be treated as they move across borders and wallets rather than through brokers.
Competition is also increasing. A growing list of companies are now offering tokenized funds, and major financial players are considering how to defend their role as gatekeepers. If it is blockchain based
distribution gains momentum, this could take away the advantage that banks and brokers who control access to markets have long held.
For Ondo and Franklin Templeton, the bet is that investors will prefer a model that combines familiar assets with new rails.