00:00What does it mean when they talk about tokenizing this ETF?
00:05So tokenization in general is when you convert normal assets, stocks, bonds, even private equity, into shares that you just put in a blockchain.
00:13And they want this ETF share to be tokenized so it will maintain the same bill, same regulatory structure, same disclosures, same everything, just that it's tokenized.
00:21And so why start with something like T-bill here? Because, again, you think about sort of the spectrum of excitement.
00:29Short-term treasury bills are on one end and then I have to imagine things like the blockchain and tokenization are on the other.
00:36I think on their end it's the most liquid and it's the biggest ETF they have. It's $6.3 billion.
00:40They have over 18 ETFs or let's just say a dozen or so and it's by far the largest.
00:44And I think that's what you need, especially when you do this, because why do you even tokenize?
00:48Many reasons. In theory, it's supposed to make settlement faster.
00:51ETFs are T plus one now. It's supposed to be instantaneous.
00:54Now you have, instead of the traditional piping of the NYSE, NASDAQ or SIBO, it's on the blockchain.
01:01So you attract a new audience and it reduces backdoor office work in theory.
01:06So we have yet to see it in practice. I think it's the first, according to them.
01:10So it's really going to be interesting if the SEC approves it.
01:12So does the Assure FM Investments actually need SEC approval or can it simply move forward as long as the SEC
01:18doesn't flat out reject the proposal?
01:20I think for this case, they do need SEC approval because they want it to be in the same system.
01:24Because we have reported on private credit funds tokenizing the same private credit funds,
01:29but then it's not listed in the exchange. So for this one, it definitely needs SEC approval.
01:35And just very quickly here, does this change what T-Bill holds or how it trades?
01:40I mean, for the user of T-Bill, for the owner of T-Bill, does it change your experience in any way?
01:45Not at all. So for us, it's going to be exactly the same. It's like buying.
01:49The way they say it is, it's like a credit card. You just swipe and you shop and you buy.
01:53You don't really know how it works. So that's how sources I talk to say that's how they want it to work.
01:58They just want it to be seamless for the consumer or the investor without really knowing the back end.
02:03And in theory, again, I always say in theory, this is supposed to be more seamless.
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