Franklin Templeton and SBI Holdings Form Joint Venture to Focus on Digital Assets in Japan
Franklin Templeton, a global investment management organization, and SBI Holdings, a Japanese financial conglomerate, announce the formation of a joint venture (JV) in Japan. This strategic partnership aims to advance digital asset management and broaden investment opportunities for Japanese investors.
Harnessing Combined Expertise
The proposed JV will leverage Franklin Templeton’s comprehensive suite of investment products, including exchange-traded funds (ETFs) and digital assets, alongside SBI’s extensive distribution network and financial services capabilities. Jenny Johnson, President and CEO of Franklin Templeton, highlighted the synergy: “We are excited to collaborate with SBI Holdings. The extensive reach of SBI’s brand among 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.”
Yoshitaka Kitao, Chairman and CEO of SBI Holdings, expressed confidence in the partnership: “We are very pleased to establish an asset management company in Japan with Franklin Templeton. This partnership will leverage technology as a key growth driver and promote various businesses related to Web3.”
The JV will focus on managing digital assets and securities, including tokenization. This area is expected to grow significantly, potentially reaching $16.1 trillion by 2030. Franklin Templeton and SBI Holdings aim to provide Japanese investors with access to a diversified range of investment solutions that include emerging asset classes such as digital assets and cryptocurrencies.
Expanding ETF Offerings
In addition to this joint venture, Franklin Templeton has been active in the digital asset space. The company recently launched the Franklin Ethereum ETF (EZET) on the Cboe BZE Exchange, following the successful launch of its spot bitcoin ETF (EZBC) earlier this year. “We have been active participants and builders in the digital asset ecosystem since 2018 and have seen the transformative power of blockchain technology firsthand,” said Roger Bayston, Head of Digital Assets at Franklin Templeton.
Patrick O’Connor, Head of Global ETFs for Franklin Templeton, added, “With EZET, we are thrilled to offer our clients additional access to the digital asset ecosystem within a regulated fund structure that integrates seamlessly into traditional portfolios.”
Recent Collaborations and Strategic Moves
SBI Holdings has been expanding its digital asset capabilities through various partnerships. In November 2023, stablecoin issuer Circle and SBI Holdings announced a strategic partnership to integrate the US Dollar Coin (USDC) into the Japanese financial ecosystem. This collaboration aims to simplify cross-border transactions, enhance liquidity in the digital asset market, and introduce innovative financial products and services.
Furthermore, Japan is evaluating potential deregulation in the digital asset sector, which aligns with the SEC’s recent approval of spot cryptocurrency exchange-traded funds (ETFs) in the U.S. This regulatory shift could further facilitate the growth and adoption of digital assets in Japan.
The joint venture between Franklin Templeton and SBI Holdings marks a significant step in advancing digital asset management and broadening investment opportunities in Japan. By combining their expertise, the two firms aim to provide innovative financial solutions that meet the evolving interests and objectives of Japanese investors.
About Franklin Templeton
Franklin Templeton is a global investment management organization serving clients in over 150 countries with over US$1.6 trillion in assets under management as of June 30, 2024. The firm offers expertise in fixed income, equity, alternatives, and multi-asset solutions through its specialist investment managers.
About SBI Holdings
SBI Holdings is a Japanese financial conglomerate offering a wide range of financial services, including securities, asset management, banking, and insurance. The company is a leader in Japan’s digital asset space, promoting various businesses related to Web3 and leveraging technology for growth.
Image by Tianshu Liu from Unsplash
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