Federated Hermes Will Issue Tokenized Fund Shares

The Pittsburgh-based investment firm plans to launch its first tokenized fund shares by early 2027.

Updated on Oct. 13, 2026 in Investing

Federated Hermes Will Issue Tokenized Fund Shares

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Federated Hermes, a Pittsburgh-based firm overseeing $911 billion in assets, plans to issue its first tokenized fund shares in early 2027. The project will leverage a new partnership with the New York-based firm Prometheum to handle brokerage, custody, and clearing services.

Why it matters

Tokenized money market funds align with the firm's established liquidity funds franchise and represent a move to integrate blockchain technology into traditional financial offerings. This partnership aims to make these digital products accessible to financial advisers through traditional brokerages.

Federated Hermes currently oversees $911 billion in total assets. The firm has yet to finalize the specific funds or target blockchains for the upcoming tokenization initiative.

The players

Federated Hermes

An investment management firm headquartered in Pittsburgh that oversees approximately $911 billion in assets.

Prometheum

A New York-based firm that provides regulated brokerage, custody, and clearing services for digital assets.

The details

The collaboration involves using Prometheum for regulated brokerage, custody, and clearing services. This infrastructure is intended to facilitate the distribution of tokenized products to clients through financial advisers.

October 13, 2026: The partnership between Federated Hermes and Prometheum was announced.
Early 2027: Federated Hermes expects to issue its first tokenized fund shares.

Market Dynamics

The move reflects an industry-wide push to modernize traditional investment products through blockchain integration. By incorporating tokenized money market funds, firms are seeking to bridge the gap between legacy asset management and digital infrastructure.

Retail investors may eventually gain access to these digital fund shares through their existing financial advisers and traditional brokerage accounts. The integration aims to simplify the adoption of blockchain-based products without requiring new specialized investment platforms.

The takeaway

Tokenization aims to improve the efficiency and accessibility of traditional liquidity funds for a wider array of institutional and individual clients. Investors should track how the firm integrates these digital assets into standard investment reporting and tax structures as the 2027 launch approaches.