SBI and Franklin Templeton’s Joint Venture Fuels XRP ETF Talk

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As a researcher with a strong background in the financial industry and a particular focus on digital assets, I find the recent announcement of SBI Holdings’ joint venture with Franklin Templeton to establish a digital asset business intriguing. Having closely followed developments in this space for years, I am well-versed in the strategies of both companies.

SBI Holdings of Japan and Franklin Templeton, an American asset management firm, plan to form a partnership for managing digital assets. In this collaboration, SBI will claim a 51% ownership share, whereas Franklin Templeton will secure a 49% stake.

By making this strategic move, the two firms are looking to gain a competitive edge in Japan’s market, in preparation for the expected introduction of digital asset exchange-traded funds (ETFs), spurred by the success of Bitcoin and Ether ETFs in the United States.

Franklin Templeton, with manageable assets totaling $1.5 trillion, is recognized for its investments in cryptocurrency Exchange-Traded Funds (ETFs), specifically those based on Bitcoin and Ethereum. The firm is currently considering the possibility of introducing a Solana ETF. SBI Holdings, a notable Japanese financial conglomerate with vast involvement in digital assets, has had a lengthy collaboration with Ripple, the entity responsible for XRP.

SBI, Ripple and XRP

Since 2017, SBI’s collaboration with Ripple has evolved, initially focusing on the adoption of Ripple’s system for international money transfers by SBI Remit. By the year 2021, SBI Remit introduced XRP as an intermediary currency in their transactions from Japan, enhancing speed and cost efficiency.

Since then, the service has broadened its reach to facilitate remittances to the Philippines, Vietnam, and Indonesia. In a significant move during the year 2022, SBI Motor Japan announced XRP as their primary currency for transactions.

The collaboration between SBI Holdings and Franklin Templeton fuels buzz about the potential creation of an XRP Exchange-Traded Fund (ETF). Previous indications from Ripple’s leadership have suggested this as a possibility. With SBI’s adoption of XRP, this alliance could pave the way for crypto ETFs and attract substantial attention in the market.

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2024-07-25 17:48