Franklin Templeton signed a memorandum of understanding with Japanese financial conglomerate SBI Holdings to establish a joint venture in Japan, according to a statement on July 26.
The agreement will enable SBI Holdings to distribute Franklin Templeton investment products in Japan, with a particular focus on exchange-traded funds and emerging asset classes including digital assets and cryptocurrencies.
The JV comes as Japanese regulations on digital assets and ETFs are evolving and aims to combine Franklin Templeton's experience with tokenized money market funds and digital assets-backed ETFs in the U.S. with SBI's expertise in Japan's digital asset space, the statement said.
“The extensive reach of SBI’s iconic brand amongst younger audiences in Japan aligns well our commitment to help this new generation of investors achieve their goals through our future-focused investment solutions,” Jenny Johnson, president and CEO of Franklin Templeton, said in the statement.
“This strategic partnership … represents a tremendous step forward to broaden our client reach and solidify our commitment in the market,” she added.
Franklin Templeton had $1.6 trillion in assets under management as of June 30, and SBI Group's asset management business had ¥6.64 trillion ($5 billion) in assets under management as of March 31, 2023, according to its latest annual report.
