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Asset Manager F/m Seeks SEC Approval to Tokenize Treasury ETF Shares

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F/m Investments has requested the United States Securities and Exchange Commission to permit it to tokenize shares of its flagship Treasury exchange-traded fund.

Key Takeaways:

  • F/m desires SEC approval to tokenize possession of its $6B Treasury ETF.
  • Tokenized shares can be similar to present ETF shares, not a brand new asset.
  • The transfer alerts rising adoption of tokenization in regulated funds.

The $18 billion asset supervisor filed an application on Wednesday looking for exemptive aid that might allow possession data for the F/m US Treasury 3 Month Bill ETF (TBIL) to be maintained on a permissioned blockchain.

The fund, which holds roughly $6 billion in belongings, would proceed to function as a traditional ETF regulated beneath the Investment Company Act of 1940.

F/m Calls Proposal First-of-Its-Kind Bid to Tokenize ETF Shares

In a press release announcing the filing, F/m described the proposal as the primary try by an ETF issuer to get hold of US regulatory approval particularly for tokenized shares of a registered funding firm.

Under the plan, blockchain-based shares would carry the identical CUSIP identifier as present TBIL shares and supply similar rights, charges, voting privileges and financial publicity.

According to the agency, the initiative is just not meant to create a brand new digital asset. Instead, tokenization would perform instead methodology for recording possession, alongside conventional book-entry programs utilized by brokerages and custodians.

The submitting locations F/m alongside a rising variety of conventional asset managers experimenting with tokenization.

Franklin Templeton has already launched blockchain-enabled US authorities cash market funds, shifting share possession data onchain whereas sustaining compliance with federal securities legal guidelines.

F/m’s proposal extends that mannequin to a listed Treasury ETF, doubtlessly increasing entry to tokenized fixed-income merchandise inside regulated markets.

F/m additionally drew a pointy distinction between its method and crypto-native devices comparable to stablecoins or unregistered tokens.

The firm emphasised that tokenized TBIL shares would stay topic to impartial board oversight, every day portfolio disclosure, third-party custody and audits, in addition to the investor protections embedded within the 1940 Act.

If authorised, the construction would permit TBIL to commerce by way of each conventional brokerage channels and digital-native, token-aware platforms utilizing a single share class. F/m mentioned the fund’s funding technique and portfolio composition would stay unchanged.

NYSE’s Tokenization Push Signals Shift Beyond Pilot Projects

The software arrives as tokenization good points traction throughout monetary markets.

Just days earlier, the New York Stock Exchange revealed plans for a new trading venue designed to help around-the-clock buying and selling and onchain settlement of tokenized shares and ETFs, underscoring the trade’s push past pilot tasks towards broader adoption.

Market forecasts recommend the chance might be important. Standard Chartered beforehand projected that tokenized real-world belongings could reach a $2 trillion market capitalization by 2028.

In a current analysis, Web3 digital property agency Animoca Brands mentioned that tokenization of RWAs might unlock a $400 trillion traditional finance market.

Last month, Libeara, the blockchain infrastructure platform backed by Standard Chartered’s enterprise arm SC Ventures, rolled out a new tokenized gold funding fund in Singapore, bringing one of many world’s oldest safe-haven belongings onto digital rails.

The fund, launched in partnership with FundBridge Capital, permits skilled buyers to achieve publicity to gold by way of blockchain-based tokens issued on Libeara’s ledger.

The publish Asset Manager F/m Seeks SEC Approval to Tokenize Treasury ETF Shares appeared first on Cryptonews.

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