Tokenization is moving from pilots to practice. The World Economic Forum projected that private equity and venture capital markets could grow to about $700B, which is expected to be tokenized. That potential scale would still reshape global finance.

APAC is already moving ahead. Hong Kong’s spot ETFs drew $400 million on day one. Japan is preparing an SBI-backed ETF with Franklin Templeton. Singapore is setting tokenization frameworks. These ETF milestones matter individually and as stepping stones toward broader tokenization.

Japan’s ETF Push: Retail First, Institutions Later

In an exclusive interview with BeInCrypto, Max Gokhman, Deputy Chief Investment Officer at Franklin Templeton Investment Solutions (FTIS), explained why retail flows, proxy bets, and sovereign adoption may drive the next phase.

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His remarks highlight both opportunities and risks. While ETFs mark the first entry points, the larger story is how tokenization could scale across asset classes and reset market structures. Yet history suggests markets rarely move in a straight line.

Japan’s Financial Services Agency (FSA) updated its fund guidelines in 2025, creating space for new ETFs with partners like SBI Holdings. Gokhman believes retail will provide the first liquidity. He argues that institutions will follow once secondary markets mature.

While he frames retail as a catalyst, history suggests early flows can fade without robust demand from pensions and funds. Japan’s ETF story illustrates how short-term retail demand can lay the groundwork for tokenized markets that institutions may eventually embrace.

Gokhman stressed that institutions are less interested in fractional LP funds. Instead, they want vehicles that manage volatility and enhance liquidity — the conditions required for large-scale adoption.

“It starts more with the retail level … Retail may need more liquidity, but they also provide liq

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Author: Shota Oba