BREAKING: SBI & Franklin Templeton Set to Revolutionize Japan’s Crypto Market with BTC, ETH, and XRP ETFs

Japan's financial landscape braces for disruption as banking giant SBI partners with asset management titan Franklin Templeton to launch the country's first Bitcoin (BTC), Ethereum (ETH), and XRP exchange-traded funds.

The move—coming after years of regulatory foot-dragging—signals institutional crypto adoption is now inevitable, even in traditionally conservative markets. Analysts predict these ETFs could unlock billions in dormant retail and institutional capital.

Regulatory green light proves crypto's here to stay. The Financial Services Agency (FSA) finally folded—probably after realizing Japan was missing out on all those sweet, sweet management fees.

This isn't just another crypto product launch. It's the financial establishment's reluctant admission that digital assets aren't going anywhere. The question now: Which traditional firm will scramble onto the bandwagon next?

Joint Venture Built on 2024 MoU

The ETF initiative is part of a broader joint venture first outlined in a Memorandum of Understanding (MoU) signed in July 2024, where Franklin Templeton and SBI Holdings committed to forming an asset management JV focused on emerging asset classes — including digital assets and cryptocurrencies.

According to Franklin Templeton’s press release dated July 26, 2024, the partnership will combine Franklin Templeton’s “comprehensive suite of investment products including ETFs” with SBI’s financial reach and digital infrastructure in Japan. The new firm will be majority-owned by SBI (51%) and minority-held by Franklin Templeton (49%).

“We are excited to collaborate with SBI Holdings, a leading online financial conglomerate in Japan,” said Jenny Johnson, CEO of Franklin Templeton. “This strategic partnership underscores our shared belief that best-in-class financial capabilities should be more accessible for investors.”

Positioning for Japan’s Evolving Regulatory Landscape

Asakura emphasized that SBI will closely monitor Japanese regulations. If digital asset ETFs receive legal clearance, the JV will aim to become Japan’s first major issuer of regulated crypto ETFs.

Japan recently passed sweeping crypto legislation focused on asset custody, AML compliance, and in-app stablecoin usage, laying the groundwork for institutional digital asset products.

“We are very pleased to establish an asset management company in Japan as a JV with Franklin Templeton,” said Yoshitaka Kitao, Chairman and CEO of SBI Holdings. “We look forward to partnering with Franklin Templeton, whose business includes a strong focus on digital assets and industry-leading technology.”

XRP’s Inclusion and SBI’s Longstanding Support

Notably, the JV may also issue an XRP ETF, leveraging SBI’s historic alliance with Ripple and its ongoing support for tokenized finance. SBI was one of the earliest institutional backers of XRP and remains a core supporter in Asia.

SBI confirmed that the ETF venture is designed not only for Japanese markets, but to position Japan as a global hub for regulated crypto investment products, competing with markets like Hong Kong and the U.S.

A Global-Scale Partnership

Franklin Templeton, which manages over ¥300 trillion (~$1.9 trillion) globally, operates a robust ETF platform with over 100 active and indexed ETFs and $27 billion in ETF AUM as of June 30, 2024. The firm has already launched Bitcoin and Ethereum ETFs abroad and is actively exploring tokenized money market funds.

With volatility rising in traditional markets, Franklin Templeton and SBI aim to offer low-correlation, diversified crypto products to meet evolving investor needs.

What’s Next?

SBI has long been a strong supporter of XRP and Ripple. Now, the company’s involvement in this ETF plan indicates ongoing Optimism for the future of tokenized assets and blockchain-based finance.

If Japan approves crypto ETFs in 2025 or 2026, the SBI–Franklin JV could become the first domestic issuer of multi-asset crypto ETFs  including BTC, ETH, and XRP  backed by two of the most influential firms in finance and blockchain.

Also Read: Japanese Firm GATES Inc. to Tokenize $75M in Tokyo Real Estate