F/m Investments seeks to become first ETF issuer to tokenize shares

F/m Investments is seeking approval from the U.S. Securities and Exchange Commission (SEC) to tokenize and record ownership of its U.S. Treasury 3 Month Bill ETF (Nasdaq: TBIL) on a permissioned blockchain ledger. The firm claims this is the first time a company has sought SEC relief specifically for tokenized shares of a registered investment company. CEO Alexander Morris views tokenization of traditional financial instruments as inevitable. If approved, the tokenized TBIL shares would maintain the same CUSIP, rights, fees, and economic terms as existing shares, ensuring they remain compliant under the Investment Company Act of 1940, unlike stablecoins or unregistered tokens. F/m Investments promises board oversight, daily transparency, third-party custody, and audits for this process. This development occurs amidst broader industry interest in security tokenization, with entities like the NYSE also developing platforms for tokenized securities.

(Source：The Block)