Franklin Templeton is launching two exchange-traded funds that can be traded directly through crypto wallets around the clock. The funds, one tracking the S&P 500 and another focused on short-term U.S. Treasuries, will be issued on Ethereum. This move brings equity and bond exposure onto blockchain rails as the total market for tokenized assets on Ethereum approaches $13.6 billion.
Traditional asset manager Franklin Templeton is launching two ETFs designed for direct trading through crypto wallets anytime. The funds shift how traditional financial products are accessed and settled onto blockchain infrastructure.
One ETF will track the S&P 500, while another focuses on short-term U.S. Treasuries. They will be issued on Ethereum and available for trading 24 hours a day, seven days a week.
Investors can buy, sell, and hold shares using self-custody wallets. This removes the need for traditional brokerage accounts and standard market hours.
Franklin Templeton is working with Ondo Finance to support the tokenized distribution. The collaboration will allow the ETFs to trade in crypto wallets continuously, bypassing the brokerage infrastructure that has traditionally defined ETF access.
The funds are designed as fully on-chain products for peer-to-peer trading. While traditional broker access will remain, core functionality shifts toward wallet-based ownership.
The firm said the funds will use a hybrid structure for creation and redemption. Shares can be created or redeemed using both fiat currency and stablecoins.
This setup bridges conventional systems with blockchain-based settlement. It reduces reliance on intermediaries and shortens settlement cycles.
The launch aligns with rapid growth in tokenized real-world assets. Data shows total on-chain RWA market capitalization on Ethereum has reached approximately $13.6 billion.
Within that market, tokenized U.S. Treasury products account for roughly $11.8 billion. They represent the largest segment and align with Franklin Templeton’s Treasury-focused ETF.
Growth has accelerated since 2024, driven by tokenized funds and credit products. The trend points to increasing institutional participation in blockchain-based models.
The ETFs are expected to launch in the coming weeks pending regulatory clearance. They mark an expansion of the firm’s existing digital asset footprint.
