A new business focusing in digital asset management is being established by Franklin Templeton and SBI Holdings. They want to gain an early advantage on Japan’s approval of cryptocurrency exchange-traded funds (ETFs).
51% of the shares will be owned by SBI, with the remaining 49% being held by Franklin Templeton.
Franklin Templeton, a financial advisory firm that specializes in equities and bonds, has been active in the cryptocurrency space lately. Following the U.S. Securities and Exchange Commission’s approval earlier this year, they were among the first to invest in spot bitcoin ETFs.
Over $16 billion has been invested in these ETFs in just six months, indicating a significant influx. Although the United States, Canada, Australia, Hong Kong, and Brazil have all approved cryptocurrency exchange-traded funds (ETFs), Japan has not.
As soon as they receive approval from regulators, the new company intends to introduce cryptocurrency ETF products in Japan. The American market has only lately begun to trade Ethereum ETFs.
What makes ETFs so important?
For example, ETFs can be exchanged using standard brokerage accounts, but traditional cryptocurrencies require unique exchanges and private keys.
Retail investors who want to dabble in cryptocurrency without having to deal with the headache of maintaining digital wallets find this accessibility to be very alluring.
This also has to do with investigating digital asset securities. Tokenization, which makes use of blockchain technology to produce tradable tokens that reflect ownership in assets like real estate or government bonds, is a component of these securities.
The asset tokenization market may reach $16.1 trillion by 2030, according to projections made by ADDX and Boston Consulting Group.
The alternative investment portion of SBI Holdings’ portfolio has been steadily growing. To increase the scope of its services, the corporation has forged a number of foreign alliances.
SBI Securities, the biggest online brokerage in Japan, has also been quite active on the home front. In an effort to draw in more wealthy customers, they opened a wealth management office in July 2023. Jenny Johnson, Franklin Templeton’s president and chief executive officer, stated:
Their commitment to assisting this new generation of investors in achieving their objectives through our future-focused investment solutions is well matched with the widespread appeal of SBI’s renowned brand among younger audiences in Japan.
For young investors in particular, this cooperation is viewed as a means of democratizing access to sophisticated financial tools.
