Quick Breakdown
- F/m files an SEC application to tokenize US Treasury ETF shares on a permissioned blockchain.
- Tokenized shares retain full Investment Company Act protections, including voting rights and fees.
- The initiative aims to merge traditional ETF infrastructure with blockchain settlement workflows.
F/m Investments, an $18 billion asset management firm, has filed a landmark application with the U.S. Securities and Exchange Commission (SEC) to record ownership of its F/m US Treasury 3 Month Bill ETF (TBIL) on a permissioned blockchain.
First-of-its-kind filing aims to bridge traditional ETFs with blockchain settlement
If approved, this move would make TBIL the first regulated ETF to offer tokenized shares while maintaining full protections under the Investment Company Act of 1940.
The filing signals the growing convergence of traditional finance and digital assets. Unlike unregistered digital tokens, TBIL’s tokenized shares would retain investor protections including independent board oversight, third-party custody, daily transparency, and audit compliance. The tokenized ETF would continue to operate under the same CUSIP, with identical rights, fees, voting power, and economic terms as existing TBIL shares.
Tokenization under regulation could reshape ETF infrastructure
The application reflects F/m’s commitment to creating a regulated on-ramp for institutional and digital-native investors, allowing them to move seamlessly between traditional brokerage systems and token-aware platforms. The filing was submitted in collaboration with The RBB Fund, Inc., which supports governance-led innovation within the ETF framework.
Alexander Morris, CEO of F/m Investments, emphasized the importance of combining technological innovation with investor protection. By integrating tokenized shares within the existing regulatory framework, F/m aims to offer a secure and compliant pathway for digital ownership of securities.
The organization noted this step could accelerate adoption of blockchain-based settlement in regulated markets, providing a blueprint for other ETFs seeking to combine traditional investment protections with on-chain settlement capabilities.
Meanwhile SEC received two fresh policy submissions that reignited debate around self-custody rights and how proprietary trading in tokenized and DeFi markets should be regulated. One submission, filed by an individual identified as DK Willard on behalf of Louisiana retail users, highlights the state’s HB 488 law, which explicitly protects residents’ rights to self-custody digital assets.
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