Asset management giant Franklin Templeton has partnered with SBI Holdings to establish a new cryptocurrency exchange-traded fund (ETF) management company.
The two firms signed a Memorandum of Understanding (MoU) for the joint venture on July 26, according to an official announcement.
According to the announcement, the joint venture will see SBI Group holding a 51% stake, while Franklin Templeton will own the remaining 49%. This collaboration signals potential movement towards the approval of crypto ETFs in Japan, although the country’s Financial Services Agency has not yet made a definitive decision on this financial product.
While spot Bitcoin ETFs have already been approved in the U.S., Hong Kong, and several other countries, Japan remains undecided. The new partnership between SBI Group and Franklin Templeton hints at a possible future approval by Japanese regulators. The joint venture aims to offer crypto securities, though specific details are yet to be disclosed.
Jenny Johnson, President and CEO of Franklin Templeton, highlighted the strategic importance of this collaboration, stating,
“The extensive reach of SBI’s iconic brand amongst younger audiences in Japan aligns well with our commitment to help this new generation of investors achieve their goals through our future-focused investment solutions. This strategic partnership underscores our shared belief that best-in-class financial capabilities should be more accessible to investors.”
The establishment of the new asset management firm is expected to provide young investors with greater access to crypto-based ETFs, potentially bringing new capital to digital assets and contributing to price appreciation.
Yoshitaka Kitao, CEO of SBI Holdings, expressed enthusiasm for the joint venture with Franklin Templeton, highlighting the latter’s 77-year history and investment expertise. He emphasised SBI Group’s commitment to customer interests and its growth through technology and Web3 initiatives, anticipating fruitful collaboration with Franklin Templeton in the digital asset space.
The increasing momentum of cryptocurrency and blockchain technology in Japan is evident from recent developments. A survey by Nomura Holdings’ digital asset subsidiary, Laser Digital, revealed that over half of Japanese institutional investors plan to invest in digital assets within the next three years. Among the 500 investment managers surveyed, 54% showed interest in crypto assets, and around half expressed a desire to invest in Web3 projects.
In line with this trend, Ripple announced a partnership with SBI Group and HashKey DX to introduce its XRP Ledger technology to Japanese businesses. The collaboration, revealed on April 30, 2024, will see SBI Ripple Asia, a joint venture between Ripple and SBI Holdings, implement supply chain finance solutions using XRP Ledger. These moves highlight Japan’s growing shift towards digital asset investments and blockchain innovation.
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