$18B Asset Manager F/M Seeks SEC Approval to Tokenize US Treasury ETF

Why It Matters

If approved, the move could legitimize blockchain‑based record‑keeping for regulated fixed‑income products, expanding investor access and operational efficiency across the ETF market.

Key Takeaways

• F/m seeks SEC relief for tokenized Treasury ETF.
• TBIL holds $6 billion in shares on permissioned blockchain.
• Tokenized shares retain same CUSIP, rights, and fees.
• Approach mirrors Franklin Templeton’s blockchain money‑market pilots.
• Could enable 24/7 on‑chain trading via NYSE venue.

Pulse Analysis

Tokenization is reshaping how securities are recorded, but regulatory clarity remains essential. By filing for exemptive relief, F/m Investments aims to bridge traditional fund structures with blockchain technology, ensuring that its Treasury ETF complies with the Investment Company Act while leveraging a permissioned ledger for ownership tracking. This hybrid model preserves existing investor protections—such as board oversight, daily transparency, and third‑party custody—while introducing a digital layer that could streamline settlement and reduce custodial friction.

The TBIL filing is notable for its scale and specificity. With about $6 billion of shares slated for on‑chain representation, F/m plans to use the same CUSIP number and maintain identical voting, fee, and economic rights as the conventional ETF. By treating tokenization as merely an alternative record‑keeping method rather than a new asset class, the firm hopes to attract both traditional brokerage clients and digital‑native platforms without altering the fund’s investment objective. This approach mirrors recent experiments by Franklin Templeton, which moved money‑market fund ownership to a public blockchain while staying under the 1940 Act.

Industry observers see this as a pivotal step toward mainstream adoption of tokenized securities. The SEC’s decision could set a precedent for other fixed‑income ETFs, potentially unlocking 24/7 trading and on‑chain settlement capabilities that NYSE is preparing to support. Such developments promise greater liquidity, faster transaction times, and broader market participation, but they also raise questions about custody standards, interoperability, and investor education. As regulators, asset managers, and exchanges converge on blockchain solutions, the outcome of F/m’s application will likely influence the pace and direction of tokenized finance across the United States.