F/m Investments Seeks SEC Approval to Launch First Tokenized ETF Shares

TLDR

• F/m files with the SEC to tokenize TBIL ETF shares within current rules.
• Tokenized TBIL keeps one CUSIP, fees, rights, and standard ETF operations.
• Permissioned blockchain settlement aligns with the Investment Company Act.
• NYSE and asset managers signal growing momentum for regulated tokenization.
• Approval could set a precedent for hybrid, compliant onchain ETF settlement.

F/m Investments moved to advance regulated blockchain adoption by filing an exemptive application seeking SEC approval to tokenize existing ETF shares. The firm targeted its U.S. Treasury 3 Month Bill ETF for the initiative and positioned the step within the current regulatory structure. The request marked a notable milestone as traditional asset managers expand token-enabled systems.

F/m Targets Token-Enabled ETF Structure Within Existing Regulation

F/m Investments applied to the U.S. SEC to permit ownership recording of TBIL shares on a permissioned blockchain. The firm emphasized alignment with the Investment Company Act of 1940, and it aimed to merge digital settlement with longstanding oversight. The approach therefore sought to support regulated workflows while preserving current fund terms.

The requested relief would allow TBIL shares to appear on a blockchain ledger under the same CUSIP. The structure would retain rights, fees, and operational mechanics, and it would maintain standard ETF functions. The filing signaled an effort to create a compliant bridge between traditional and digital recordkeeping.

F/m worked with The RBB Fund, which oversees governance for its multi-series trust. The group supported operational integrity and ensured consistency with Rule 6c-11. The application reflected shared efforts to modernize processing while upholding established safeguards.

Industry Momentum Builds Around Tokenization of Traditional Assets

The submission arrived as major exchanges advanced their own tokenization plans. The New York Stock Exchange revealed development of an onchain settlement platform for tokenized securities, and it highlighted pending regulatory clearance. This broader activity demonstrated widening interest in blockchain-based market infrastructure.

Large asset managers also examined digital ledger systems. BlackRock leadership compared tokenization’s potential impact to early internet expansion, and it framed the shift as a structural modernization. Market participants expect tokenized operations to streamline settlement and improve data transparency.

Other financial firms also explored onchain asset representation. Technology providers accelerated tools for regulated token workflows, emphasizing compatibility with legacy rails. The environment created strong momentum for compliant innovation.

Regulated Tokenization Gains Ground Through Structured Oversight

F/m’s model kept tokenized shares inside a strict compliance perimeter. The approach included board supervision, daily reporting, and independent custody, and it upheld standard auditing obligations. These features contrasted with unregistered digital tokens that often lack controlled frameworks.

The firm stated that TBIL’s objective and portfolio would remain unchanged. The ETF would continue to function under traditional market operations, and token-aware platforms could integrate the new workflow. The structure would therefore support dual-channel settlement through a single share class.

If the SEC grants relief, the initiative may set a precedent for future token-enabled funds. Additional firms may follow with similar filings, and regulated markets may shift toward hybrid settlement systems. The development positioned blockchain adoption within an established regulatory path.

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