The U.S. administration issued an executive order directing the SEC, CFTC and other regulators to develop a framework for tokenizing ETFs while F/m Investments’ tokenization application remains under SEC review. DTCC is updating FundServ to let tokenized shares move between on-chain and traditional ledgers, cutting two-thirds of processing costs.
The administration enacted an executive order directing the SEC, CFTC and other regulators to establish a coordinated framework for ETF tokenization, supporting multiple no-action letters and advancing F/m Investments’ in-progress SEC application.
F/m Investments proposes that each token serve as an ETF share recorded at the transfer agent, with smart contracts encoding shareholder rights and eliminating intermediary derivative layers.
DTCC is enhancing FundServ, used by roughly 85% of the ETF industry, to enable seamless transfers between traditional ledgers and on-chain tokenized shares via simple ledger entries.
Tokenization is poised to cut up to two-thirds of institutional processing costs, with early adoption focused on collateral management and back-office optimization and broader wealth management uptake expected next.
