XRP News Today: Franklin Templeton and SBI Push Japan's First Spot XRP ETF

Franklin Templeton, a global asset manager with over ¥300 trillion in assets under management, has partnered with SBI Holdings to support the launch of a spot XRP ETF in Japan. The joint venture, formalized in July, aims to introduce digital asset investment products into the traditional asset management space and was revealed in SBI’s investor materials on August 1. The proposed ETFs include a crypto-asset-only fund tracking Bitcoin and XRP, as well as a blended offering that combines digital assets with gold, in which Bitcoin and XRP exposure would be limited to 49% [1].

SBI’s filing with Japan’s Financial Services Agency marks the first dual-asset spot crypto ETF proposal in the country. The move follows regulatory developments from late June, when the FSA published a discussion paper proposing a 20% tax on crypto gains and recognizing crypto ETFs as regulated financial products. This shift addresses key regulatory uncertainties that have long hindered institutional adoption, including the treatment of crypto gains as miscellaneous income and the absence of a formal framework for crypto investment vehicles [1].

Franklin Templeton will contribute its compliance expertise and global infrastructure to support the product rollout. The firm, which operates more than 100 ETFs globally, emphasized its commitment to bringing institutional-grade investment tools to the crypto space. SBI, one of Ripple’s largest external shareholders, has also integrated XRP into its remittance services through SBI Remit, further aligning its strategic interests with the token’s institutional adoption [1].

Despite these developments, the market faces challenges. XRP’s liquidity remains lower than Bitcoin’s, which could complicate real-time NAV tracking for market makers. Additionally, global demand for crypto ETFs has softened, with spot Bitcoin ETFs recording over $1 billion in net outflows in the past week [1].

SBI and Franklin Templeton have not disclosed a projected timeline for product launch, citing the need for regulatory clarity, particularly regarding tax code revisions and custody standards. If approved, Japan would be the first major economy to sanction a spot XRP ETF, potentially setting a precedent for global crypto regulation [1].

The FSA is currently reviewing the applications, signaling a broader shift in Japan’s approach to digital assets. The outcome will depend on how quickly policymakers can finalize legislative changes and establish robust frameworks for crypto custody, price integrity, and leverage limits [1].

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[1] Franklin Templeton backs XRP ETF play in Japan with ¥300 trillion AUM (https://cryptoslate.com/franklin-templeton-backs-xrp-etf-play-in-japan-with-%c2%a5300-trillion-aum/)