Asset management firm F/m Investments sought SEC approval on Wednesday to tokenize shares of its flagship U.S. Treasury Bill exchange-traded fund.
Regulated Pathway For Treasury Bill ETFs
F/m Investments applied with the regulator to record ownership of tokenized shares of the US Treasury 3 Month Bill ETF (NASDAQ:TBIL) on a “permissioned” blockchain.
If the SEC approves the request, TBIL’s existing ETF shares would be represented on a blockchain under the same Committee on Uniform Securities Identification Procedures code. This would grant the same rights, fees, voting rights, and economic terms as current TBIL shares.
The firm stated that its approach ensures tokenized shares remain within the framework of the Investment Company Act of 1940, a law that applies to investment companies, such as mutual funds, ETFs and closed-end funds.
“Tokenization is coming to securities markets whether we file this application or not,” said Alexander Morris, CEO of F/m Investments. “The question is whether it happens inside the regulatory framework investors have relied on for 85 years, or without that set of protections for investors.”
The ETF has assets under management worth $6.29 billion as of this writing
The Growth Of Tokenized TradFi Offerings
This move by F/m Investments comes amid an accelerating industry-wide shift toward asset tokenization.
The total market for tokenized U.S. treasuries has swelled to $9.57 billion, according to RWA.xyz, with BlackRock’s (NYSE:BLK) fund, BUILDL, among the most popular.
Earlier this week, the New York Stock Exchange announced its plans to develop a platform for the trade and on-chain settlement of tokenized U.S.-listed stocks and exchange-traded funds, offering 24/7 operations and instant settlement.
Furthermore, Ondo Finance launched a “full TradFi portfolio” of stocks, ETFs, bonds and commodities on Solana, expanding its offering beyond the Ethereum (CRYPTO: ETH) and BNB Chain (CRYPTO: BNB).
Price Action: Shares of TBIL ETF fell 0.02% in after-hours trading after closing 0.02% higher at $49.98 during Wednesday’s regular trading session, according to data from Benzinga Pro.
The stock maintains a stronger price trend over the short, medium, and long terms, according to Benzinga’s Edge Stock Rankings.
Photo Courtesy: Jason Raff on Shutterstock.com
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Recent Comments