Franklin Templeton and SBI Holdings collaborate, Japan to potentially launch a cryptocurrency ETF?

According to a report from Cointelegraph, asset management giant Franklin Templeton is collaborating with Japanese financial group SBI Holdings to establish a new cryptocurrency exchange-traded fund (ETF) management company in Japan, aiming to provide "a new generation of investors" with more opportunities to access diversified investment tools.

Franklin Templeton and SBI Holdings to Collaborate on ETF

According to reports, the two companies officially signed a Memorandum of Understanding (MoU) for a joint venture on July 26.

Franklin Templeton CEO Jenny Johnson stated:

SBI's widespread influence among young audiences in Japan aligns well with our commitment to helping the next generation of investors reach their goals. This strategic partnership underscores our shared belief that investors should have easier access to top-tier financial capabilities.

SBI Holdings Actively Expanding into Web 3 Development

SBI Holdings is a Japanese financial group focused on Web 3 development, and has recently partnered with several companies to promote stablecoins and various developments in the Web 3 space.

• Collaboration with stablecoin issuer Circle to promote the circulation of the stablecoin USDC in Japan and establish deep banking relationships
• SBI, Mitsubishi UFJ, and Progmat collaborate to sell real estate security tokens
• SBI's billion-yen venture fund supports Web3 and AI startups
• SBI Remit, a subsidiary remittance company, jointly established SBI Ripple Asia with Ripple to introduce Ripple-supported remittance solutions to bank accounts in the Philippines, Vietnam, and Indonesia

Will Japan Introduce a Cryptocurrency ETF?

Franklin Templeton has already launched Bitcoin spot ETF with the code: EZBC and Ethereum spot ETF with the code: EZET in the United States, with assets under management of $460 million and $24.86 million respectively as of July 26.

When asked if the joint venture will introduce a cryptocurrency ETF in Japan, a spokesperson for Franklin Templeton stated that it could happen once the regulatory framework allows it:

The joint venture is expected to offer diversified investment solutions, including Franklin Templeton's existing ETFs. As regulations regarding digital assets and cryptocurrencies continue to evolve in Japan, the new joint venture will introduce relevant products approved by regulatory authorities.

Previously, following the approval of Bitcoin spot ETF in the U.S., Japanese securities firm "SBI Securities" received many purchase requests from customers. However, "SBI Securities" mentioned that purchasing overseas ETFs in Japan requires approval from the Financial Services Agency, so they are currently unable to provide this service to customers. Japanese experts pointed out that Japan currently prohibits nationals from trading Bitcoin ETFs and does not allow delegated purchasing.

Tough FSA? The Financial Services Agency of Japan similarly does not allow nationals to trade Bitcoin ETFs and prohibits delegated purchasing.