Franklin Templeton, a $1.7 trillion asset manager, is partnering with Ondo Finance to launch tokenized versions of five of its ETFs – covering US equities, fixed income, gold, and more – accessible via crypto wallets. This initiative aims to broaden investment access, particularly in Europe, Asia-Pacific, and Latin America, by offering 24/7 trading without traditional brokerage accounts. Ondo will purchase ETF shares and issue tokens representing ownership rights through a special-purpose vehicle, with Ondo Global Markets providing liquidity. The move is part of a growing trend of bringing Real World Assets (RWAs) onto the blockchain, with Ondo currently controlling roughly 70% of the $950 million tokenized equity market. Educational programs will accompany the launch to cater to crypto-native investors unfamiliar with traditional investment strategies. While users won’t directly own the underlying shares, the tokens offer exposure to the ETFs’ returns. A US launch is delayed due to regulatory complexities surrounding the Investment Company Act of 1940 and Regulation D exemptions. The partnership represents a significant step for institutional adoption of on-chain distribution.
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