OnDo Finance has partnered with global asset management firm Franklin Templeton to tokenize ETFs. As traditional financial products expand into the 'on-chain' realm in earnest, the potential for utilizing DeFi is growing.
OnFinance announced that it has entered into a partnership to tokenize five exchange-traded funds (ETFs) managed by Franklin Templeton. This collaboration is significant as it marks the first time Franklin Templeton ETFs, which manage approximately $1.7 trillion (about 2,550 trillion won) in assets, are being offered on the blockchain.
The products subject to tokenization include the Franklin Focused Growth ETF (FFOG), Franklin U.S. Large-Cap Multifactor ETF (FLQL), Franklin Gold ETF (FGDL), Franklin High Yield Corporate Bond ETF (FLHY), and Franklin Income & Equity ETF (INCE). These products are offered through OnDo's global market platform.
ETF 'Tokenization'... Investment via Wallet Possible
The structure differs from existing ETFs. Franklin Templeton continues to manage the actual assets, while OnDo Finance purchases the ETF shares and issues blockchain tokens based on them. Instead of directly holding the ETF shares, investors gain exposure to profits through these tokens.
This structure significantly expands the utility of DeFi. Tokenized ETFs can be used as on-chain collateral, providing features that were impossible with existing securities account-based products. In particular, it targets the 'crypto native' investor base, which operates primarily around cryptocurrency wallets and stablecoins.
The trading environment is also changing. Market makers at Ondo provide liquidity, and 24-hour trading is possible even when traditional markets are closed.
Global launch first, excluding the U.S.
The product will be available first in Europe, Asia-Pacific, the Middle East, and Latin America. The U.S. market has been postponed until regulatory clarity is secured regarding the on-chain distribution of registered funds.
This collaboration comes amidst the expansion of the Ondo Global Market. Since its launch in September 2025, the platform has tokenized over 100 U.S. stocks and ETFs and has grown into the largest tokenized securities platform, currently exceeding $700 million (approximately 1.05 trillion KRW) in total value locked (TVL).
The collaboration with Franklin Templeton is differentiated by going beyond simple individual stock tokenization to offer an actively managed fund as a single token. This allows investors to access diversified investment in smaller units.
OnDo Finance Growing Rapidly… Regulatory Risks Eased
OnDo Finance's total TVL is approximately $2.7 billion (about 4.05 trillion won). It grew rapidly following the launch of 'OnDo Nexus' in 2025, surpassing $2 billion in early 2026. Ethereum (ETH) is the primary network, followed by Solana (SOL) and the BNB chain.
A positive trend is also being detected in terms of regulation. The U.S. Securities and Exchange Commission (SEC) concluded its multi-year investigation into OnDo Finance in late 2025 without any sanctions.
However, the token price is sluggish. ONDO is currently trading at approximately $0.26 (about 390 won), down more than 85% from its all-time high of $2.14 recorded in December 2024.
This collaboration is regarded as an example of expanding the intersection between traditional finance and blockchain. It is suggested that if ETF tokenization becomes widespread, there is a possibility of gradual changes in the structure of the global asset market.
🔎 Market Analysis
On-chain entry of ETFs accelerates through collaboration between OnDo Finance and Franklin Templeton
Accelerating the trend of traditional financial assets expanding into the DeFi ecosystem
Shift in investment paradigm expected due to 24-hour trading and wallet-based access
💡 Strategic Points
Tokenized ETFs can be used as collateral → Expansion of DeFi-linked profit strategies
Expanded global investment opportunities due to increased accessibility to small-scale diversified investments
U.S. regulatory uncertainty is a short-term risk, while global market early launch is an opportunity.
📘 Glossary
Tokenization: Converting physical or financial assets into blockchain-based digital tokens.
ETF: Exchange Traded Fund that bundles multiple assets for trading
TVL: The total value of assets deposited on the platform, serving as an indicator of growth potential and reliability.
💡 Frequently Asked Questions (FAQ)
Q.
How is ETF tokenization different from traditional ETF investing?
While traditional ETFs are traded through securities accounts, tokenized ETFs can be held and traded directly in a wallet in the form of blockchain tokens. Additionally, they offer higher utility as they can be used as collateral in DeFi.
Q.
Why is it being released first in regions other than the U.S.?
This is because regulations regarding on-chain securities distribution in the United States are not yet clear. To avoid regulatory risks, the service will first launch in global markets with relatively flexible regulations.
Q.
What should I be careful about when investing in Ondo Finance?
Apart from platform growth, the token price (ONDO) is exhibiting significant volatility, so caution is required when investing. Additionally, the speed of service expansion may be affected by changes in the regulatory environment.
TP AI Important Notes
The article has been summarized using a language model based on TokenPost.ai. Key points of the text may be omitted or inaccurate.
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