F/m applies for SEC approval to tokenize its ETF stocks

F/m Investments is applying to the Securities and Exchange Commission (SEC) for approval to tokenize its three-month ETF (TBIL) stocks of US treasury bond bonds and record ownership on the licensed blockchain ledger. F/M manages an ETF with a scale of approximately $18 billion and has stated that this is the first time it has applied for an exemption from the SEC regarding the tokenization of registered investment company stocks. If approved, TBIL's existing ETF stocks will be represented on the licensed ledger with the same CUSIP, rights, fees, voting rights, and economic terms as the current ETF stocks. Tokenized stocks will still be regulated under the 1940 Investment Companies Act and provide board supervision, daily transparent disclosure, and third-party custody and auditing. The New York Stock Exchange announced this week that it is developing a tokenized US stock and ETF trading and on chain settlement platform, and the plan requires regulatory approval.