F/m applies for SEC approval to tokenize its ETF shares

F/m Investments is applying to the U.S. Securities and Exchange Commission (SEC) for approval to tokenize shares of its U.S. Treasury 3-Month ETF (TBIL) and record ownership on a permissioned blockchain ledger. F/m manages ETFs with approximately $18 billion in assets and stated that this is the first time an exemption has been sought from the SEC for the tokenization of registered investment company shares. If approved, existing TBIL ETF shares will be represented on the permissioned ledger with the same CUSIP, rights, fees, voting rights, and economic terms as the current ETF shares. The tokenized shares will still be regulated under the Investment Company Act of 1940 and will provide board oversight, daily transparent disclosures, and third-party custody and auditing. The New York Stock Exchange announced this week that it is developing a platform for trading tokenized U.S. stocks and ETFs and for on-chain settlement, with the related plans requiring regulatory approval.