F/m Investments requested america Securities and Change Fee (SEC) to permit it to tokenize shares of its flagship Treasury exchange-traded fund (ETF).
The $18 billion asset supervisor filed Wednesday for exemptive reduction to let the F/m US Treasury 3 Month Invoice ETF (TBIL) report possession of its roughly $6 billion in shares on a permissioned blockchain, whereas remaining a normal 1940 Act exchange‑traded fund.
In its press launch, F/m describes the submitting because the “first of its variety” from an ETF issuer looking for US regulatory reduction particularly for tokenized shares of a registered funding firm.
The corporate mentioned the onchain illustration would use the identical Committee on Uniform Securities Identification Procedures quantity, and carry the identical rights, charges, voting energy and financial phrases as TBIL shares right now, successfully making tokenization simply one other option to report who owns the shares, fairly than a separate new asset.
A broader tokenization development in conventional funds
F/m’s strategy intently tracks recent experiments by Franklin Templeton, a significant US asset supervisor that has launched blockchain‑enabled US authorities cash market funds and different tokenization pilots, shifting share possession data for its onchain US authorities cash market fund to a public blockchain whereas protecting the product underneath the Funding Firm Act.
Associated: State Street rolls out new crypto tokenization tools
In F/m’s case, tokenization could be layered onto a listed Treasury ETF fairly than a cash market mutual fund, probably widening the universe of token‑enabled, regulated fastened‑revenue merchandise.
The corporate contrasts its mannequin with “stablecoins or unregistered digital tokens,” emphasizing that TBIL’s tokenized shares would nonetheless be topic to unbiased board oversight, day by day portfolio transparency, third‑social gathering custody and audit, and the broader protections of 1940 Act funds.
If the SEC grants the requested reduction, F/m says TBIL would be capable of help each conventional brokerage rails and digital-native, “token-aware” platforms by means of a single share class, with out altering its funding goal or portfolio.
The applying got here simply days after the New York Stock Exchange unveiled plans for a brand new venue aimed toward 24/7 buying and selling and onchain settlement of tokenized shares and ETFs, as tokenization shifts from pilots to mainstream markets.
Cointelegraph reached out to F/m Investments for extra remark, however had not obtained a response by publication.
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