The announcement of a joint venture between Jio Financial Services Limited (JFS), the financial services unit of Reliance Industries Ltd, and BlackRock, is a significant development for the Indian economy.
The JFS is owned by Asia’s richest man, Mukesh Ambani, and with this partnership he aims to establish an Indian asset management venture to become one of the country’s leading non-banking finance company.
BlackRock aims to launch a “digital-first asset manager” aimed at serving India’s growing investor population. The companies each plan to invest up to $150 million in the 50:50 joint venture.
Hitesh Sethia, President at Jio Financial Services, highlighted that “The partnership will leverage BlackRock’s deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive digital delivery of products.”
Rachel Lord, Chair & Head of APAC at BlackRock, expressed the immense opportunity that India represents. She emphasized how the convergence of rising affluence, favorable demographics, and digital transformation is reshaping the market in remarkable ways.
The partnership between these two financial giants amalgamates their deep expertise, as BlackRock is the world’s largest asset manager, with over US$8 trillion in assets under management. On the other hand, Jio Financial Services is a prominent player in the Indian financial services market.
While the partnership announcement did not explicitly mention crypto assets, there is a possibility that digital asset services may be offered in the future, including crypto services.
Also, in August 2022 Ambani hosted AGM on Metaverse, revealing Jio 5G plans, showing his interest in metaverse and blockchain technology.