Asset Manager F/m Seeks SEC Approval to Tokenize Treasury ETF Shares

Core Viewpoint - F/m Investments has filed an application with the SEC to tokenize shares of its Treasury ETF, marking a significant step in the integration of blockchain technology within regulated financial markets [2][3][8] Group 1: Proposal Details - The application seeks exemptive relief to maintain ownership records for the F/m US Treasury 3 Month Bill ETF (TBIL) on a permissioned blockchain [2] - This initiative is described as the first attempt by an ETF issuer to gain US regulatory approval for tokenized shares of a registered investment company [3] - Tokenized shares would carry the same CUSIP identifier as existing TBIL shares, offering identical rights, fees, voting privileges, and economic exposure [3] Group 2: Operational Framework - The tokenization process is intended as an alternative method for recording ownership, complementing traditional book-entry systems used by brokerages and custodians [4] - The proposal aims to extend the model of blockchain-enabled funds, similar to Franklin Templeton's US government money market funds, to a listed Treasury ETF [5] - Tokenized TBIL shares would remain subject to independent board oversight, daily portfolio disclosure, third-party custody, and audits, ensuring compliance with the Investment Company Act of 1940 [6] Group 3: Market Context - The application comes at a time when tokenization is gaining traction across financial markets, indicating a shift beyond pilot projects [7] - F/m's approach distinguishes itself from crypto-native instruments, emphasizing that tokenized shares are not a new digital asset but identical to existing ETF shares [8]