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 its first tokenized fund shares early next year, joining Wall Street's push to bring traditional investments onto blockchain rails.
- Wall Street firms are increasingly adopting blockchain to modernize asset issuance and settlement, with Citi projecting the tokenized securities market could balloon to $5.5 trillion by 2030.
- SEC-Registered Prometheum will provide custody and clearing services, allowing brokerages to offer the products without rebuilding systems. Kevin Barr, Federated Hermes' director of digital assets, said it is a "natural extension of how we distribute our products today."
- Barr emphasized that tokenization represents "a fundamental upgrade to financial market infrastructure for this generation," enabling "instantaneous movement of those funds" compared to traditional systems.
- Money market funds are the likely starting point for Federated Hermes, reflecting a broader push by firms like BlackRock and JPMorgan to digitize assets; specific fund details and blockchains remain undisclosed.
14 Articles
14 Articles
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 ...
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