Federated Hermes, the Pittsburgh-based asset manager overseeing $911 billion, plans to issue its first tokenized fund share classes in early 2027. The initiative will be carried out with Prometheum, a digital-securities infrastructure provider, with the goal of making blockchain-based versions of the firm’s funds available through traditional brokerages and financial advisers.
The move places Federated Hermes among major financial institutions exploring whether blockchain technology can update the way investment products are issued, held, transferred and settled. According to CoinDesk, the firm has not yet identified which funds will be converted into tokenized share classes or disclosed which blockchains will support them.
Money market funds could lead the launch
Kevin Barr, Federated Hermes’ director of digital asset products and platform, said money market funds are a likely starting point. These funds invest in short-term debt and are commonly used to hold cash while seeking a return.
The potential focus reflects Federated Hermes’ long-established liquidity-management business. Barr said the company is seeing substantial industry interest in tokenized money market funds and that the product category fits the firm’s existing capabilities.
A tokenized fund share is a digital representation of ownership recorded on a blockchain. In principle, blockchain-based records can support faster transfers, automated recordkeeping and more continuous movement between financial platforms. Proponents of the technology also see tokenized money market funds and U.S. Treasuries as useful instruments for companies and institutional investors managing cash.
Digital fund units may also be used as collateral for loans or trades. That could allow holders to put assets to work without selling them, although the Federated Hermes products and their eventual features have not yet been specified.
From third-party versions to in-house issuance
Federated Hermes has previously explored tokenization through arrangements with outside platforms. It has worked with London-based Archax, Goldman Sachs and Singapore-based Conduit Digital to create tokenized representations of existing investment products.
Those earlier projects involved third parties issuing digital versions of conventional fund holdings. The new plan would give Federated Hermes a more direct role: the asset manager intends to issue the tokenized fund share classes itself.
Barr said the planned approach represents a progression from the firm’s earlier blockchain initiatives. He joined Federated Hermes in May after spending 15 years at BNY, where his most recent position was head of digital cash and innovation.
The broader financial industry has increasingly tested blockchain-based versions of traditional investments. BlackRock, Franklin Templeton, JPMorgan and New York Life Insurance Company are among the institutions identified as pursuing tokenization projects. Citi has projected that the tokenized securities market could reach $5.5 trillion by 2030.
Prometheum to connect the products with brokers
Prometheum is expected to provide the regulated infrastructure needed to distribute the products through established investment channels. Its SEC-registered broker-dealer subsidiaries will handle custody, clearing and settlement services.
Prometheum’s correspondent clearing platform will also allow other broker-dealers to make Federated Hermes’ tokenized products available to their own customers. This arrangement is intended to let advisers and investors access the products through familiar brokerage accounts rather than requiring a separate system built around blockchain assets.
Barr identified distribution and access as major obstacles to adoption. In his view, the partnership can extend Federated Hermes’ existing distribution model instead of asking financial advisers and brokerages to redesign their operations.
The companies have not provided details on the specific funds, blockchain networks or final launch structure. Those decisions will determine how the products function and who can access them when the first share classes are introduced.
Moneyiar market picture
Moneyiar data at 20:29 on October 13, 2026, showed Ethereum at $2,504.4186495932, down 0.7% over 24 hours and 7.05% over seven days. Decentraland was priced at $0.0935137669, down 0.73% in 24 hours and 8.37% over seven days.
Meteora stood at $0.3876096315, down 2.68% over 24 hours but up 16.45% over seven days. BAS was priced at $0.0210942993 at 20:28, down 3.55% over 24 hours and 7.51% over seven days.
These market figures provide a snapshot of selected digital assets as Federated Hermes prepares its traditional investment products for a potential blockchain-based format. The planned fund shares would be issued by an established asset manager and distributed through regulated brokerage infrastructure, rather than being presented as cryptocurrency tokens in the source material.
