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Franklin Templeton Launches Tokenized High Yield Bond ETF on Pendle
Franklin Templeton has introduced its tokenized high yield corporate bond ETF, known as FLHYon, on the Pendle platform. This new token, which tracks the FLHY ETF, features a maturity date set for 2026 and aims to add a yield-trading layer to the tokenized junk bond fund. The initiative is part of a collaboration with Ondo Finance, with Ondo Global Markets (BVI) Limited serving as the issuer and holding the underlying assets.
As of early to mid October 2026, FLHYon has a net asset value of approximately $24.17 per token, with around 20,558 tokens in circulation. The total on-chain assets associated with FLHYon amount to about $497,000. While holders of FLHYon do not own shares of the FLHY ETF directly, they gain economic exposure to the ETF, including benefits from dividend reinvestments.
Pendle specializes in yield tokenization, allowing traders to engage with an asset's future income stream as a tradable entity with a defined end date. Although Pendle hosts the market for FLHYon, it is not the issuer and has no direct connection to the token's structure. The token operates primarily on the Ethereum blockchain, with minting and redemption processes available five days a week, while peer-to-peer transfers can occur 24/7.
Source: KLEA News