Recently, US asset management firm F/m Investments submitted a groundbreaking exemption application to the US Securities and Exchange Commission (SEC), seeking to record a portion of its approximately $6.3 billion US 3-Month Treasury Bill ETF shares on a permissioned blockchain ledger. If approved, this pilot would mark a pivotal test for tokenizing traditional financial assets within the existing, highly regulated framework—setting a compliance-driven example for the entire industry.
01 Application Core
The core of F/m Investments’ application is to obtain SEC exemption approval to conduct a technical experiment—without altering any aspect of the structure or operation of its flagship product, the F/m US Treasury 3 Month Bill ETF.
This ETF, trading under the ticker TBIL, manages about $6.3 billion in assets. The application makes it clear that tokenization will not change the ETF’s investment targets, portfolio structure, trading methods, or fee entitlements.
The only change lies in how a portion of the shares’ ownership is recorded—migrating from traditional book-entry systems to a permissioned blockchain ledger.
02 Dual Safeguards
Unlike typical crypto asset issuances, F/m Investments’ approach aims to balance compliance and innovation. These on-chain "tokenized shares" will retain the same CUSIP identifier, economic rights, voting rights, and fee structure as the original shares.
This means the experiment operates entirely within the mature securities regulatory framework established by the Investment Company Act of 1940 and Rule 6c-11, which has been in place for 85 years.
Investors will continue to benefit from all traditional fund protections, including independent board oversight, daily disclosures, third-party custody, and audits. F/m Investments CEO Alexander Morris emphasized that the key is to enable tokenization within the existing regulatory framework—not outside of it.
03 Market Transformation Drivers
F/m Investments’ initiative is not an isolated case; it reflects a profound transformation sweeping global financial infrastructure. Asset management giant BlackRock’s ongoing investment in blockchain technology, along with Boston Consulting Group’s projection that tokenized assets will reach $16 trillion by 2030, all point in the same direction.
Data shows that the total market size for tokenized US Treasuries alone recently reached $957 million, underscoring strong institutional interest. This is not just a technological upgrade but an efficiency revolution. Blockchain technology can significantly shorten settlement cycles, reduce reconciliation costs and operational risks, and enable smoother asset onboarding and trading for platforms like Gate.
04 The Substance of Tokenization
To understand this application, it’s crucial to distinguish "tokenized shares" from "cryptocurrencies." The underlying assets of tokenized shares are traditional securities strictly regulated under the Investment Company Act of 1940, with unchanged legal characteristics and investor protections.
Here, technology simply serves as a more efficient and transparent tool for recording ownership. This "old assets, new records" model is fundamentally different from creating a new digital asset from scratch.
F/m’s approach is akin to building a new digital highway (the blockchain ledger) for the same car (ETF shares), while the proof of ownership, traffic rules, and passenger rights remain completely unchanged.
05 Industry Landscape Evolution
This application comes at a pivotal moment of intensified industry competition and collaboration. On one hand, major exchanges are announcing their own tokenization plans. On the other, projects like Ondo Finance are actively expanding their tokenized stocks and ETF businesses to multiple blockchains, including Solana.
Meanwhile, legislative progress is underway in the US. The Senate Agriculture Committee is discussing new crypto market structure bills, and President Trump has expressed his desire to sign relevant legislation soon. Together, these developments are laying the policy and market foundation for scaling tokenized traditional assets from pilot projects to mainstream adoption.
06 Opportunities from Gate’s Perspective
For Gate and its users, the compliant tokenization of traditional financial assets signals a broader future. This will greatly expand the variety and depth of tradable assets on the platform, especially those related to Real World Assets (RWA).
More importantly, compliance pathways led by regulated institutions like F/m bring certainty and security to the industry, helping attract a wider range of traditional investors and capital.
As a leading platform bridging innovation and tradition, Gate will continue to monitor these developments closely and remain committed to selecting and offering next-generation, transformative digital assets within a secure and compliant framework—helping users seize the future of wealth creation.
Looking Ahead
If the SEC approves F/m’s application, we could soon see a unique hybrid scenario: shares of the same ETF could be traded through traditional brokers like Charles Schwab, or circulate as tokens on compatible digital asset platforms like Gate.
This means institutional capital could seamlessly and compliantly move between traditional and digital settlement workflows—truly realizing "one class of shares, two worlds of circulation."
Alexander Morris describes their role as "building a gateway that merges technological innovation with investor protection," rather than being a bystander. Regardless of the SEC’s final decision, the door to a converged world has now been officially opened.
