A major crypto news story today came from Franklin Templeton and Ondo Finance, which announced a partnership that will see the latter offer tokenized exchange-traded funds (ETFs) via crypto wallets.
Crypto News Today: Franklin Templeton and Ondo Finance Partner
Franklin Templeton, a financial services juggernaut with over $1.7 trillion in assets, has partnered with Ondo Finance, a major player in the crypto industry.
The deal will have Ondo Finance purchase some of Franklin Templeton’s ETFs, and then issue tokens through a special/purpose vehicle that passes through financial exposure to investors. These investors will own the rights to the return stream rather than the underlying shares.
The deal will initially include five ETFs: FFOG, FLQL, FDGL, FLHY, and INCE. 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 to this a new audience.”
Franklin Templeton has moved aggressively in the crypto industry, launching several ETFs. Data shows that its Bitcoin ETF (EZBC) has over $437 million in assets, while EZET, its Ethereum ETF, has accumulated over $42 million in assets.
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Ondo Finance, on the other hand, has a total value locked of over $2.69 billion, while its Global Markets division has over $710 million in assets under management. 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.
RWA is Growing Fast in the Crypto Industry
Real-World Asset (RWA) tokenization has been growing rapidly over the past few months, with data compiled by RWA showing that total assets have jumped to over $15 billion.
More large companies have embraced tokenization technology. JPMorgan, the biggest American bank, launched the My OnChain Net Yield Fund (MONY) on Ethereum late last year. This fund now manages over $100 million in assets.
Similarly, BlackRock launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which has over $2.03 billion in assets under management.
Just this week, the New York Stock Exchange (NYSE) announced a major partnership with Securitize. This deal will enable the 24% trading of tokenized securities on the platform.
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