Federated Hermes (FHI) Plans First Tokenized Fund Shares for 2027 as Wall Street Moves Onchain
The asset manager said money market funds are a likely starting point as Prometheum provides custody, clearing and settlement for the products.
- On Tuesday, Pittsburgh-based Federated Hermes announced a partnership with New York-based Prometheum to issue tokenized fund shares early next year, expanding the $911 billion manager's push onto blockchain rails.
- Wall Street firms increasingly adopt blockchain to modernize asset issuance and settlement. Citi projects the tokenized securities market could balloon to $5.5 trillion by 2030, drawing major players into the space.
- SEC-Registered Prometheum will provide custody and clearing services, allowing brokerages to offer products without rebuilding systems. Kevin Barr, Federated Hermes' director of digital assets, called the partnership a "natural extension of how we distribute our products today."
- "Tokenization represents, in a lot of ways, a fundamental upgrade to financial market infrastructure for this generation," Barr said. He added the technology enables "instantaneous movement of those funds" with greater programmability.
- Money market funds are the likely starting point, though specific blockchains remain undisclosed. The effort reflects a broader push by firms like BlackRock and JPMorgan to digitize traditional assets across Wall Street.
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Federated Hermes taps Prometheum for tokenized fund debut in Q1 2027
Federated Hermes, which manages $911.6 billion in assets, has partnered with Prometheum to develop tokenized funds for U.S. brokerage distribution, with the first product expected in Q1 2027. Prometheum and Federated Hermes said in their Oct. 13 announcement that the…
Federated Hermes (FHI) plans first tokenized fund shares for 2027 as Wall Street moves onchain
The $911 billion Pittsburgh-based asset manager is teaming up with Prometheum to bring blockchain-based share classes of its funds to traditional brokerage accounts.
Federated Hermes, Prometheum Plan Onchain Funds for Q1 2027
TL;DR Federated Hermes and Prometheum plan to launch tokenized fund shares through regulated U.S. brokerage infrastructure, with the first product expected in Q1 2027. Prometheum will provide issuance, distribution, custody, clearing and settlement through its SEC-registered, FINRA-member broker-dealer network, while Federated Hermes supplies investment-management expertise. The firms have not yet identified the first fund or ...
Federated Hermes, manager with nearly USD 912 billion in assets, prepares shares of funds that would exist directly in blockchain. The initiative still depends on the evolution of digital registers and regulatory frameworks under development, so it does not have a confirmed launch date.
Manages with $911 billion in assets plans to issue tokenized fund shares early next year in partnership with Prometheum
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