Franklin Templeton is launching two exchange-traded funds that can be traded directly through crypto wallets around the clock. It marks a shift in how traditional financial products are accessed and settled.
The move brings equity and bond exposure onto blockchain rails, at a time when tokenized assets on Ethereum alone are approaching $13.6 billion.
The asset manager said the funds — one tracking the S&P 500 and another focused on short-term U.S. Treasuries — will be issued on Ethereum and available for trading 24/7.
Investors will be able to buy, sell, and hold shares using self-custody wallets, removing the need for traditional brokerage accounts and standard market hours.
Franklin Templeton is also working with Ondo Finance to support the tokenized distribution of the funds.
According to Bloomberg, the collaboration will allow the ETFs to trade in crypto wallets continuously, bypassing the brokerage infrastructure that has traditionally defined ETF access.
Franklin Templeton launches ETFs that trade directly in crypto wallets
The two ETFs are designed as fully on-chain products, allowing peer-to-peer trading without relying on centralized intermediaries.
While access through traditional brokers will still be supported, the core functionality shifts toward wallet-based ownership and transfer.
Franklin Templeton said the funds will operate under a hybrid structure, allowing shares to be created or redeemed in both fiat currency and stablecoins. This model is intended to bridge conventional financial systems with blockchain-based settlement.
The firm has already expanded its digital asset footprint in recent years. This includes the launch of an on-chain money market fund and is now extending that approach to broader asset classes.
How the funds work without brokers or market hours
Unlike traditional ETFs, which are limited by exchange trading hours and settlement timelines, the new funds are designed to function continuously. Transactions can occur at any time, with ownership recorded directly on-chain.
This setup reduces reliance on intermediaries and shortens settlement cycles, while giving investors direct control over their holdings through self-custody wallets.
The funds will also be compatible with platforms that support on-chain settlement, allowing participation from both crypto-native users and traditional investors.
Tokenized assets on Ethereum near $13.6B as Treasuries dominate growth
Franklin Templeton’s move comes as tokenized real-world assets continue to expand on Ethereum.
Data shows total on-chain RWA market capitalization on the network has reached approximately $13.6 billion. Also, around $9.86 billion is actively circulating across 36 issuers.
Within that market, tokenized U.S. Treasury products account for roughly $11.8 billion, making them the largest segment.
This aligns closely with Franklin Templeton’s decision to include a Treasury-focused ETF, suggesting the firm is targeting an already established demand base.
Growth has accelerated since 2024, with tokenized funds and credit products driving most of the expansion. The trend points to increasing institutional participation, as asset managers test blockchain-based distribution and settlement models.
The ETFs are expected to launch in the coming weeks, pending regulatory clearance.
Final Summary
- Franklin Templeton’s ETFs shift trading from broker-led systems to wallet-based, 24/7 access on Ethereum.
- The launch aligns with a $13.6B tokenized asset market where Treasuries already dominate demand.
