A major asset management firm applies for the first time for government bond ETF tokenization, and the SEC regulatory framework faces a new test

[Crypto World] A management firm with a scale of $18 billion has recently submitted a special application to the SEC: to tokenize its US 3-month Treasury bond ETF shares and deploy them on a licensed blockchain network. This is the first attempt in the field.

Why is this so important? Traditional digital tokens often lack investor protection mechanisms, but this time it’s different. The application specifically emphasizes operation under the regulatory framework of the 1940 Investment Company Act, which means what investors can expect? Independent oversight at the board level, third-party custody guarantees, and other protections typically found in traditional financial products.

In simple terms, this is a formal collision between traditional finance and on-chain assets. The institution is testing: how to compliantly transfer real-world financial products onto the blockchain while preserving investor rights and protections. The SEC’s approval outcome could open new possibilities for regulatory exploration across the entire sector.