Franklin Templeton's tokenized high-yield bond product has been launched on Pendle, supporting on chain income trading BlockBeats news, on October 14th, according to official sources, the tokenized version of Franklin Templeton's high-yield corporate bond ETF FLHY, FLHYon, has landed on Pendle, provided by Ondo, with a product maturity date of December 10, 2026. This ETF is actively managed, with over 80% of its assets allocated to high-yield corporate bonds, with holdings spread across more than 250 investment targets, and returns distributed on a monthly basis. Users can exchange USDC for FLHYon through Ondo, and then trade principal tokens (PT), earnings tokens (YT), or liquidity pools (LP) on Pendle to achieve a split transaction between on chain principal and earnings, and can exit related positions before maturity. Chetan Karkhanis, Senior Vice President of Franklin Templeton and responsible for innovation research and technology business in the Asia Pacific region, stated in a Pendle interview that the company began researching blockchain as early as 2014-2015, viewing it as an investment opportunity and financial infrastructure. Traditional fund operations involve a large amount of record management work such as subscription, redemption, settlement, pricing, and registration, while distributed ledgers are expected to significantly reduce related costs. As a result, the company launched the Benji tokenization platform between 2015 and 2016, gradually building a business system covering digital wallets, order management, portals, and digital ledgers. At present, Benji has covered multiple blockchain networks, and its tokenized funds include products in markets such as the United States, Luxembourg, Singapore, and the British Virgin Islands. Karkhanis believes that the market demand for tokenized assets is expanding from short duration, guaranteed overnight funding rate (SOFR) products such as money market funds to richer income assets, including bonds and ETFs. The potential advantages of tokenized assets are not only in terms of issuance and settlement efficiency, but also include intraday earnings accumulation, peer-to-peer transfers, and participation as collateral in on chain financial activities. Regarding the prospect of tokenized funds entering DeFi, he stated that structured products, vaults, and circular strategies are expected to improve capital utilization, but when targeting retail investors, risk disclosure, independent ratings, and transparency of underlying assets will become regulatory priorities. In terms of the Asia Pacific market, Karkhanis believes that Singapore and Hong Kong have relatively clear regulatory frameworks, while South Korea and Japan are the follow-up key markets that the company is focusing on. He pointed out that in order for tokenized real-world assets (RWAs) to move from their current scale to trillions of dollars, it is necessary for trading platforms, corporate treasury departments, and large traditional financial institutions to accelerate their adoption, while promoting the development of tokenized commodities, stocks, bonds, and other assets. With the continuous increase in the number of tokenized funds, the focus of industry competition is shifting from product issuance to practical application and large-scale adoption. Pendle believes that introducing high-yield corporate bonds and tokenized funds into the on chain income trading system is expected to create new DeFi application scenarios for traditional assets and gradually attract more liquidity. [Original link]