October 13th 2026, 9:05 AM
Franklin Templeton's FLHYon Tokenized Bond ETF Launches on Pendle
Key Summary
Franklin Templeton's high-yield corporate bond ETF, FLHY, has been tokenized and launched on the Pendle platform as FLHYon, offering economic exposure to investors with a 1:1 backing ratio and a 2026 maturity date.
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Introduction
Franklin Templeton's high-yield corporate bond ETF, FLHY, has been tokenized and launched on the Pendle platform as FLHYon.What is FLHYon?
FLHYon is a token that tracks Franklin Templeton's FLHY ETF, built through a collaboration with Ondo Finance.The Issuer
The issuer is Ondo Global Markets (BVI) Limited, which holds the underlying assets and has designed the structure to keep the tokens backed 1:1, alongside cash held in transit for liquidity.How FLHYon Works
Holders do not own FLHY shares directly, but instead get economic exposure to the ETF, including dividend reinvestments.The Risks
The risks include credit risk inherent to high-yield bonds, issuer risk at Ondo, oracle risk from price feeds, and smart contract risk at every protocol the token touches.Market Details
FLHYon lives primarily on Ethereum, with minting and redemption running 24/5, mirroring conventional market hours. Peer-to-peer transfers run 24/7.Background
Franklin Templeton and Ondo established a strategic partnership in March 2026, covering the tokenization of five ETFs: FLHY, FFOG, FLQL, FGDL, and INCE.Conclusion
The launch of FLHYon on Pendle marks a significant step forward for the tokenized asset market, offering investors a new way to access high-yield corporate bonds.#Pendle#FLHYon#FranklinTempleton#TokenizedETF