TLDR
- Japan’s new ETF rules opened doors for Franklin Templeton’s retail-focused products.
- Solana’s lending markets now hold $2.7 billion in commitments, raising supply risks.
- Singapore plans retail access to tokenized funds by 2027 under MAS guidelines.
- Hong Kong’s spot crypto ETFs saw $400 million in day-one investor inflows.
Asia is quickly becoming the center of the tokenization movement. Franklin Templeton is placing major bets on this shift, focusing on countries like Japan and Singapore. As global markets prepare for blockchain-based financial systems, Asia’s early adoption and regulatory support are shaping the next phase of digital asset growth. Tokenization is no longer a test — it’s becoming part of the financial system.
Franklin Templeton’s Strategy in Japan
Franklin Templeton is increasing its presence in Japan through new ETF products backed by blockchain. These products are developed in partnership with SBI Holdings and target retail investors as the first point of entry.
Japan’s Financial Services Agency (FSA) changed fund guidelines in 2025. These updates allow space for tokenized products and ETFs to enter the market. Max Gokhman, Deputy CIO at Franklin Templeton Investment Solutions, explained that retail flows may help start liquidity in these markets. He added, “Retail may need more liquidity, but they also provide liquidity to the institutions once retail gets large enough.”
While retail participation opens early demand, institutional investors are expected to follow when secondary markets improve. Gokhman mentioned that institutions are not interested in fractional funds. Instead, they seek products that reduce volatility and support high-volume trading. This demand will push providers to build more stable and scalable offerings.
APAC’s Growing Lead in Tokenization
Across the Asia-Pacific region, tokenization efforts are moving from concepts to live products. Countries like Hong Kong, Singapore, and Japan are building regulatory frameworks and launching new token-based financial vehicles.
Singapore’s central bank, MAS, expanded Project Guardian in 2025. It has now created a full framework for tokenized funds and aims to make them available to retail investors by 2027. This structured approach is drawing interest from family offices and institutional clients. At Token2049 in Singapore, Franklin Templeton met with OCIO clients who asked for advanced strategies rather than simple asset exposure.
Hong Kong also showed strong market appetite. When it launched spot crypto ETFs, they received $400 million in inflows on their first day. These early movements show that Asia is not only building regulation but also attracting capital through real investment products.
Demand for Regulated Products Amid Market Risks
Before the arrival of ETFs, investors often relied on proxy bets, such as companies holding large crypto reserves. Firms like MetaPlanet and Remix Point attracted speculative interest due to their exposure to assets like Bitcoin. However, these bets raised concerns about leverage and counterparty risks.
Gokhman discussed how Solana’s lending markets have attracted $2.7 billion in commitments. He said, “That raises prices, as more demand meets limited supply.” While this shows high demand, it also raises questions about market stability. Franklin Templeton sees tokenized ETFs as a safer option because they are fully backed and offer direct exposure, much like traditional commodity ETFs.
Tokenized products also allow for 24/7 trading. Gokhman noted, “Money never sleeps, but tokens don’t.” This around-the-clock market access could change how financial portfolios are managed.
Franklin Templeton’s Broader Tokenization Goals
Franklin Templeton is not only launching ETFs but also developing new blockchain infrastructure. The firm is building its own on-chain tools to manage both public and private assets.
The company is exploring other asset categories as well. These include real estate, private credit, and cultural assets, which could only be traded efficiently through tokenized systems. Gokhman stated, “We are actively creating our own on-chain stack, turnkey portfolios… even exploring categories like cultural assets.”
The firm is also looking at strategic partnerships to expand its tokenization plans. While details are limited, discussions with major platforms like Binance suggest that more products may be in development.
Franklin Templeton sees Asia not just as a growth market but as a region leading in adoption. Gokhman said, “There’s greater sophistication within APAC… asking us to structure it in a particular way.” The company expects digital asset maturity in the region to shape how tokenization will grow globally.
