Ripple Partner SBI Holdings to Establish a Joint Venture With Franklin Templeton to Explore Spot Bitcoin ETFs in Japan

As per the latest report from Nikkei, Ripple partner SBI Holdings said that it would establish a joint venture with US-based investment management

Japanese financial giant SBI Holdings is set to establish a joint venture with US-based investment management firm Franklin Templeton by the end of 2024. The goal of this partnership is to explore the investment landscape for spot Bitcoin ETFs in Japan. This move comes after the massive success of spot Bitcoin ETFs in the US in the first six months of launch.

Franklin Templeton is a renowned player in the mutual fund and ETF industry, with several products in the market. In this partnership, Franklin Templeton will own 49% of the new company, while SBI Holdings will hold a majority stake of 51%. This joint venture aims to cater to the growing interest in spot Bitcoin ETFs worldwide.

The significance of this partnership lies in the major tax advantages that these spot Bitcoin ETFs would offer to Japanese investors once they begin trading on the domestic securities market. SBI Holdings has revealed that they have received numerous requests from Japanese customers for such a product.

Moreover, Franklin Templeton also has experience in the crypto ETF market, having recently launched the spot Ether ETF, as reported by CNF.

Currently, owning physical Bitcoin in Japan is subject to a hefty 55% capital gains tax. In contrast, the spot Bitcoin ETFs will attract a tax rate of only 20.315% on capital gains. Additionally, classifying Bitcoin ETFs as “transfer income” will allow investors to carry forward losses and aggregate gains and losses. This measure would result in lower tax bills for investors.

This development has once again sparked discussions regarding a spot XRP ETF, given SBI Holdings's strong alliance with Ripple for years. Throughout the years, SBI Holdings has played a crucial role in promoting Ripple blockchain technology in Asia through a joint venture called SBI Ripple Asia. This partnership primarily focuses on enhancing cross-border payment systems using Ripple tech.

Furthermore, SBI Holdings has been a notable supporter of the XRP token, recognizing its potential in facilitating fast and cost-effective international transactions. In 2018, SBI Ripple Asia spearheaded the formation of a consortium with multiple Japanese banks to utilize Ripple’s technologies for domestic and international payments. Earlier this month, SBI Holdings also launched XRP Ledger NFTs at the World Expo 2025, as reported by CNF.

This deep partnership between SBI Holdings and Ripple further strengthens the case for an XRP ETF in Japan in the future. In the US market, BlackRock crypto chief Robert Mitchnick recently ruled out the possibility of any further crypto ETFs, including Solana, XRP, etc., citing liquidity issues due to their very little market share in the broader crypto market. However, Ripple President Monica Long remains optimistic about an XRP ETF once the Ripple vs. SEC lawsuit settles, as reported by CNF.

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