F/m Investments has asked the United States Securities and Exchange Commission to allow it to tokenize shares of its flagship Treasury exchange-traded fund.
Key Takeaways:
- F/m wants SEC approval to tokenize ownership of its $6B Treasury ETF.
- Tokenized shares would be identical to existing ETF shares, not a new asset.
- The move signals growing adoption of tokenization in regulated funds.
The $18 billion asset manager filed an application on Wednesday seeking exemptive relief that would permit ownership records for the F/m US Treasury 3 Month Bill ETF (TBIL) to be maintained on a permissioned blockchain.
The fund, which holds roughly $6 billion in assets, would continue to operate as a conventional ETF regulated under the Investment Company Act of 1940.
In a press release announcing the filing, F/m described the proposal as the first attempt by an ETF issuer to obtain US regulatory approval specifically for tokenized shares of a registered investment company.
Under the plan, blockchain-based shares would carry the same CUSIP identifier as existing TBIL shares and offer identical rights, fees, voting privileges and economic exposure.
According to the firm, the initiative is not intended to create a new digital asset. Instead, tokenization would function as an alternative method for recording ownership, alongside traditional book-entry systems used by brokerages and custodians.
The filing places F/m alongside a growing number of traditional asset managers experimenting with tokenization.
Franklin Templeton has already launched blockchain-enabled US government money market funds, moving share ownership records onchain while maintaining compliance with federal securities laws.
F/m’s proposal extends that model to a listed Treasury ETF, potentially expanding access to tokenized fixed-income products within regulated markets.
F/m also drew a sharp distinction between its approach and crypto-native instruments such as stablecoins or unregistered tokens.
The company emphasized that tokenized TBIL shares would remain subject to independent board oversight, daily portfolio disclosure, third-party custody and audits, as well as the investor protections embedded in the 1940 Act.
If approved, the structure would allow TBIL to trade through both traditional brokerage channels and digital-native, token-aware platforms using a single share class. F/m said the fund’s investment strategy and portfolio composition would remain unchanged.
NYSE’s Tokenization Push Signals Shift Beyond Pilot Projects
The application arrives as tokenization gains traction across financial markets.
Just days earlier, the New York Stock Exchange revealed plans for a new trading venue designed to support around-the-clock trading and onchain settlement of tokenized stocks and ETFs, underscoring the industry’s push beyond pilot projects toward broader adoption.
Market forecasts suggest the opportunity could be significant. Standard Chartered previously projected that tokenized real-world assets could reach a $2 trillion market capitalization by 2028.
In a recent research, Web3 digital property firm Animoca Brands said that tokenization of RWAs could unlock a $400 trillion traditional finance market.
Last month, Libeara, the blockchain infrastructure platform backed by Standard Chartered’s venture arm SC Ventures, rolled out a new tokenized gold investment fund in Singapore, bringing one of the world’s oldest safe-haven assets onto digital rails.
The fund, launched in partnership with FundBridge Capital, allows professional investors to gain exposure to gold through blockchain-based tokens issued on Libeara’s ledger.
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