American multinational asset management firm Franklin Templeton recently agreed to a joint venture with SBI Holdings, a Japanese internet-based financial conglomerate, to establish a digital asset management company in Japan in anticipation of the government’s approval of cryptocurrency exchange-traded funds, according to a report in Nikkei Asia.
Ready for launch as early as this year, the new company will capitalize on Franklin Templeton’s extensive experience in digital assets and investment products and take advantage of SBI’s vast distribution network and deep expertise in integrated financial services in the Japanese market. The new company is poised to launch its crypto ETF products as soon as Japan’s regulators give the green light.
The extensive reach of SBI’s iconic brand amongst younger audiences in Japan aligns well with our commitment to helping this new generation of investors achieve their goals through our future-focused investment solutions
Franklin Templeton President and CEO Jenny Johnson
Ownership of the new venture will see SBI take a 51% stake and Franklin Templeton, the world’s seventh-largest asset manager, own the remaining share.
“We are excited to collaborate with SBI Holdings, a leading online financial conglomerate in Japan. The extensive reach of SBI’s iconic brand amongst younger audiences in Japan aligns well with our commitment to helping this new generation of investors achieve their goals through our future-focused investment solutions,” Franklin Templeton President and CEO Jenny Johnson said in a statement.
“This strategic partnership underscores our shared belief that best-in-class financial capabilities should be more accessible for investors. It also represents a tremendous step forward to broaden our client reach and solidify our commitment in the market,” Johnson added.
Meanwhile, SBI Holdings Representative Director, Chairman, President & CEO Yoshitaka Kitao said, “SBI Group is pleased to establish an asset management company in Japan as a JV with Franklin Templeton, whose business includes a focus on digital assets and provision of industry-leading digital asset technology.”
The new company plans to offer, among others, digital asset securities that use ‘tokenization, which creates tradable ownership tokens for assets like real estate and government bonds using blockchain technology. According to Boston Consulting Group and ADDX, this market is projected to grow to $16.1 trillion by 2030.
SBI has also further diversified its alternative asset investment portfolio through partnerships with international firms, most recently with U.S. private equity firm KKR and U.K.-based Man Group.
