A Symbolic Leap: Wall Street’s Safest Assets Go On-Chain

F/m Investments, managing $18 billion in assets, has filed with the U.S. Securities and Exchange Commission (SEC) seeking exemptive relief to tokenize shares of its flagship F/m US Treasury 3 Month Bill ETF (TBIL).

The application would allow the fund's roughly $6 billion in shares to exist as on-chain tokens while remaining a standard registered investment company under the Investment Company Act of 1940.

In a press release, F/m described the filing as the "first of its kind" from an ETF issuer seeking regulatory clearance for tokenized shares of a registered fund. The tokenized TBIL shares would retain the same CUSIP number, rights, fees, voting power, and economic terms as traditional shares.

Essentially, tokenization would be an alternative way to record ownership, not a new security, symbolizing the integration of one of Wall Street’s most tightly regulated assets into blockchain technology.

This move comes amid a broader surge in tokenization on Wall Street. Franklin Templeton has already launched blockchain-enabled U.S. government money market funds, recording share ownership on public chains while maintaining regulatory compliance.

Similarly, the New York Stock Exchange recently unveiled plans for a 24/7 trading venue for tokenized stocks and ETFs, highlighting a growing appetite for instant settlement, around-the-clock access, and programmable ownership in traditional finance.

Maintaining Investor Protections While Bridging to Digital Platforms

F/m emphasizes that tokenized shares would maintain all traditional protections, including independent board oversight, daily portfolio transparency, third-party custody, audits, and compliance with the 1940 Act.

If approved, TBIL would be able to support both conventional brokerage infrastructure and token-aware digital platforms through a single share class — all without altering the fund’s investment strategy or portfolio.

F/m is careful to distinguish this model from “stablecoins or unregistered digital tokens,” which generally lack regulatory backing. TBIL-token represents a bridge between conventional finance and blockchain-native applications, offering investors a familiar, regulated product while exploring the efficiencies and innovations of on-chain record-keeping.

CEO Alexander Morris emphasized that tokenization of traditional financial instruments is “inevitable,” highlighting the strategic importance of such initiatives for institutional and digital-native investors alike.

Tokenization: From Experiment to Mainstream Market Reality

The application reflects a wider trend: tokenization is no longer just experimental. Major financial institutions are launching tokenized products across asset classes, from BlackRock’s digital liquidity fund on Ethereum to JPMorgan’s tokenized money-market fund.

F/m’s filing positions short-term Treasuries as a real-world test case for blockchain integration in regulated securities markets, demonstrating how traditional assets can coexist with emerging technology without sacrificing investor protections.

As tokenization gains traction, it could redefine how ownership is recorded, trades are settled, and financial products are accessed — blending Wall Street reliability with blockchain innovation.

F/m’s move may mark the start of a new era in which even the safest, most conservative financial instruments leverage on-chain technology, paving the way for broader adoption of tokenized securities across the global market.