Franklin Templeton and SBI Holdings to Launch Crypto ETF Management Firm in Japan

• Franklin Templeton and SBI Holdings launch a firm to manage crypto ETFs, aiming to simplify cryptocurrency investments.
• The venture positions itself to launch crypto ETFs in Japan, pending regulatory approval, targeting younger investors.
• The collaboration explores asset tokenization, with the market expected to grow to $16.1 trillion by 2030.

Franklin Templeton and SBI Holdings have announced that they are going to join efforts to establish a new firm dedicated to managing digital assets, including cryptocurrency exchange-traded funds (ETFs), in Japan. This cooperation aims to simplify cryptocurrency investments for the general public by offering ETFs that can be traded like traditional stocks. 

The new company will see SBI Holdings holding a 51% majority stake, while Franklin Templeton will own the remaining 49%. This collaboration represents Franklin Templeton’s continued expansion into the cryptocurrency market. 

The firm, traditionally known for dealing with stocks and bonds, was among the first to enter the spot Bitcoin ETF market after receiving approval from the U.S. Securities and Exchange Commission earlier this year. These ETFs have attracted significant investments, accumulating over $16 billion within six months.

Japan hasn’t yet approved cryptocurrency ETFs, but the new venture plans to launch them once they get regulatory approval. Other countries like the U.S., Canada, Brazil, Hong Kong, and Australia already have crypto ETFs. Recently, Ethereum ETFs started trading in the U.S.

The venture also aims to explore digital asset securities, which involve tokenization. This process uses blockchain technology to create tradable tokens representing ownership in assets such as real estate or government bonds. According to forecasts by Boston Consulting Group and ADDX, the asset tokenization market could grow to $16.1 trillion by 2030.

SBI Holdings has been growing its range of alternative investments through many international partnerships. In Japan, SBI Securities, the country’s largest online brokerage, has also been expanding its services. In July 2023, SBI Securities opened a wealth management office to attract wealthier clients.

Jenny Johnson, President and CEO of Franklin Templeton highlighted the strategic alignment with SBI’s strong brand presence among younger audiences in Japan. This partnership is seen as a step towards democratizing access to advanced financial tools, particularly for younger investors.