ONDO Price Jumps 4% as Franklin Templeton Taps Ondo for ETF Tokenization

Ondo, the native governance token of Ondo Finance, is up over 4% during Wednesday’s U.S market hours to trade at $0.266. While the initial surge followed broader market uptick, the ONDO price gained momentum after the partnership announcement with Franklin Templeton offering tokenized versions of its ETFs. The coin price currently extends its sideways trend below $0.3 resistance, while the momentum indicators hints building of underlying buying pressure.

21Shares Rebrands Ondo Trust to Spot ONDO ETF in New SEC Filing

Franklin Templeton, which oversees roughly $1.7 trillion in client assets, has partnered with Ondo Finance to get blockchain versions of five of its established exchange-traded funds into circulation. The move allows investors to hold and gain exposure to these funds thoroughly their crypto wallet, bypassing the traditional brokerage agreements. 

The five ETFs span various strategies: the Franklin Focused Growth ETF (FFOG), Franklin U.S. Large Cap Multifactor Index ETF (FLQL), the Franklin Responsibly Sourced Gold ETF (FGDL), the Franklin High Yield Corporate ETF (FLHY); and the Franklin Income Equity Focus ETF (INCE), for equity income. Ondo purchases the real ETF shares and sells the tokens backed by the share through special purpose structure and no alteration of the underlying assets.

Given that the tokens are on-chain, the trading runs 24 hours a day, 7 days a week. Ondo-linked market makers provide for liquidity, even during the times when traditional equity and fixed-income markets are closed. Token holders are also able to slot the assets into decentralized finance protocols for purposes such as borrowing or as collateral. The offerings begin in Europe, Asia-Pacific, the Middle East and Latin America; access to U.S. is subject to further regulatory steps.

This follows on from Franklin Templeton’s previous tokenized product, the OnChain U.S. Government Money Fund (FOBXX/BENJI), which first began operating on public blockchains in the earlier 2021, among the first regulated funds in the U.S. to do so. Ondo, which holds about $2.7 billion worth of existing tokenized assets, handles the management of issuance and liquidity for the new lineup.

The wider tokenized real-world asset sector has grown dramatically from under $1 billion in 2022 to $30 billion in 2026, reflecting fast-paced adoption amid blockchain’s push for efficient asset management. The Franklin-Ondo arrangement brings mainstream equity, bond and commodity strategies to the on-chain roster without altering the way the original funds run.

ONDO Price Coiling Before its Next Breakout

Over the past seven weeks, the ONDO price has traded in a sideways trend between the horizontal level of $0.29 and $0.26. The coin price showed several attempts to escape this consolidation, but failed immediately, indicating the lack of strength from buyers or sellers to drive a sustainable move.

 With today’s price jump, the ONDO price is heading for the overhead resistance at $0.29 in an attempt for a bullish breakout. The buyers must breach the horizontal resistance at $0.29 and downsloping trendline at $0.3 to gain sufficient momentum for a higher rally.

The post-breakout surge could push the asset another 18% higher to chase the initial target of $0.35.