- F/m Investments applies to SEC for ETF tokenization.
- Aims for regulated tokenization within existing frameworks.
- Potential transformation of how ETFs are traded.
F/m Investments, an $18 billion firm, filed for SEC approval to tokenize its US Treasury 3-Month Bill ETF shares on a permissioned blockchain, ensuring adherence to regulatory frameworks.
This development signifies a shift towards integrating blockchain technology into traditional financial markets, potentially increasing security and efficiency, while maintaining investor protections outlined in longstanding regulatory frameworks.
F/m Investments, valued at $18 billion, seeks SEC approval for tokenizing its flagship US Treasury 3 Month Bill ETF. The filing aims to integrate blockchain technology while maintaining regulatory compliance under the Investment Company Act of 1940.
Led by CEO Alexander Morris, F/m Investments emphasizes technological innovation while preserving investor protections. Co-Founder David Littleton highlighted the governance-first platform that supports responsible practices. Tokenization is proposed as a seamless experience for traditional and token-aware investors.
The filing targets the TBIL ETF (Nasdaq: TBIL), ensuring the same CUSIP with a 1:1 creation/redemption ratio to traditional shares. The proposal uses blockchain purely for record-keeping, not altering existing market trading processes.
While directly impacting the ETF share tokenization space, the move echoes wider industry exploration into securities tokenization. F/m Investments’ application is a first for a registered investment company under U.S. rules, reflecting an evolving regulatory landscape.
The SEC confirmed receipt of F/m Investments’ proposal, shaping a potential framework for future ETF tokenizations. This development is pivotal for longstanding macroeconomic financial products.
The attempt to harmonize tokenization with existing systems could reshape financial infrastructure, allowing institutions faster settlement processes while enhancing technological efficiency. Despite no precedent, broader acceptance could prompt advancements in the securities sector.
“Tokenization is coming to securities markets whether we file this application or not. The question is whether it happens inside the regulatory framework investors have relied on for 85 years, or without that set of protections for investors. We’d rather build an on-ramp that marries technological innovation and investor protection than watch from the sidelines,” said Alexander Morris, CEO of F/m Investments.
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