F/m Investments Advances Tokenized Treasury Bill ETF, Awaits SEC Green Light on Approval

F/m Investments has filed an application seeking regulatory approval on its groundbreaking initiative to tokenize shares of its U.S. Treasury 3-Month Bill ETF. This blockchain-based approach represents a significant shift in how traditional financial instruments can be digitized while maintaining their economic integrity and legal standing.

The Blockchain Advantage: Modernizing Treasury Holdings

The core of this proposal centers on converting ETF ownership into blockchain-based digital tokens. By leveraging a permissioned blockchain infrastructure, F/m Investments aims to preserve all economic benefits and shareholder rights associated with traditional Treasury Bill ETF shares. This approach combines the transparency and efficiency of distributed ledger technology with the regulatory guardrails necessary for institutional-grade financial products. Token holders would experience streamlined settlement times, enhanced portability, and a transparent ownership record—all while the underlying assets maintain their traditional structure.

Regulatory Framework: Compliance and Custody Standards

The SEC approval process requires rigorous scrutiny of multiple compliance dimensions. F/m Investments’ application emphasizes that tokenized structures must adhere to the Investment Company Act of 1940, ensuring full regulatory alignment with existing financial standards. Key oversight areas include custody arrangements, audit procedures, and transparent reporting mechanisms. The proposal demonstrates how blockchain technology can coexist with traditional regulatory frameworks by implementing controlled access parameters, institutional-level security protocols, and standardized auditing procedures.

The initiative signals growing acceptance within financial regulation of blockchain infrastructure as a legitimate settlement layer for institutional assets, provided proper governance and custody safeguards remain firmly in place.