F/m Investments Seeks SEC Approval to Tokenize $6B Treasury ETF Shares

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• F/m wants to tokenize ownership records for its $6B Treasury ETF.
• The ETF would remain fully regulated under existing U.S. securities laws.
• Approval could accelerate tokenization across traditional ETF markets.

Tokenization is moving deeper into mainstream finance, and exchange-traded funds may be next. F/m Investments has asked the U.S. Securities and Exchange Commission for permission to record ownership of its flagship Treasury ETF on a permissioned blockchain, marking a notable step in Wall Street’s shift toward onchain infrastructure.

The $18 billion asset manager wants to tokenize shares of the F/m US Treasury 3 Month Bill ETF (TBIL), a fund with roughly $6 billion in assets. If approved, the ETF would remain fully regulated under the Investment Company Act of 1940, with blockchain technology used strictly as an alternative recordkeeping layer.

A First-of-Its-Kind ETF Request

F/m describes its SEC filing as the first request from an ETF issuer seeking regulatory relief specifically to tokenize shares of a registered investment company. Importantly, the proposal does not create a new product or asset class.

The tokenized version of TBIL would use the same security identifier as existing shares and offer identical rights, fees, voting power, and economic exposure. In effect, tokenization would simply change how ownership is tracked — not what investors own.

How the Structure Would Work

Under the proposal, TBIL would continue trading through traditional brokerage systems while also supporting “token-aware” platforms. Both rails would coexist under a single share class, allowing the fund to maintain its current investment strategy and operational framework.

F/m has emphasized that tokenized shares would not resemble stablecoins or unregistered crypto assets. The ETF would still be overseen by an independent board, publish daily holdings, and rely on third-party custody and audits — preserving the investor protections associated with regulated funds.

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Part of a Broader Tokenization Push

The move aligns with a growing trend among large asset managers experimenting with blockchain-based fund infrastructure. Franklin Templeton has already launched tokenized money market funds, while financial institutions like State Street are building tools to support tokenized securities.

What sets F/m apart is its focus on a listed Treasury ETF rather than a mutual fund, potentially expanding tokenization beyond niche pilots and into widely traded fixed-income products.

The timing is notable. The filing comes shortly after the New York Stock Exchange revealed plans for a new venue focused on around-the-clock trading and onchain settlement of tokenized stocks and ETFs.

F/m’s request underscores how tokenization is evolving from experimental trials into core market infrastructure. If the SEC approves the proposal, it could open the door for more ETFs to adopt blockchain-based ownership records — blending familiar regulatory safeguards with modern settlement technology.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.