$1.7 trillion asset manager Franklin Templeton is launching tokenized ETFs that trade 24/7 in cryptocurrency wallets. The collaboration will use Ondo Global Markets to issue tokens backed by real-world assets like stocks and ETFs, while Franklin Templeton supplies products and education for crypto-native users.

In a statement, Sandy Kaul, the head of innovation at Franklin, said, “These ETFs represent a good mix of different exposures. And it gives a good test case for us to see what is really striking the appetite of this new audience.” Tokenization is the process of replacing sensitive data (like credit card numbers) or real-world assets (like real estate or stocks) with a unique digital identifier—a “token”—that has no intrinsic value. It secures data by removing it from vulnerable systems and increases liquidity by allowing fractional ownership on blockchains.

Ondo Finance has a total value locked of over $2.69 billion, while its Global Markets division has over $710 million in assets. Ondo Global Markets enables users to trade tokenized stocks and other assets in a decentralized manner. Its token has a market capitalization of over $1.2 billion. “The opportunity for the U.S. to cement its position as the global leader in modern finance is immediate,” Ondo Finance said on Wednesday. “As tokenized markets continue to develop globally, policymakers have an important role to play in ensuring that this innovation occurs both promptly and deliberately, and within a framework that upholds U.S. standards for investor protection, transparency, and market integrity.”

Franklin Templeton is one of the largest asset managers in the United States, and has dived deep into the world of crypto in recent years, so the new tokenized ETFs aren’t new. It already works with Solana and XRP through its own crypto ETFS, and it looks set to continue that trend in 2026. The firm also plans to launch education programs with Ondo aimed at crypto-native users who may be unfamiliar with long-term portfolio strategies.

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Furthermore, the push into tokenized securities highlights both the potential for broader, round-the-clock market access and the regulatory and competitive challenges facing banks, brokers, and asset managers.