Overview
- The Oct. 13 announcement said Federated Hermes expects to issue its first tokenized fund share classes in early 2027 and will partner with Prometheum to distribute them through mainstream broker channels.
- Prometheum will provide the operational stack for distribution by using ProFinancial for issuance, Prometheum Capital for custody, clearing and settlement, and its registered digital transfer agent and ATS for recordkeeping and trading support.
- Federated Hermes plans to issue the tokenized share classes itself rather than relying on third-party tokenizers and is likely to start with money market or liquidity products given its large cash-management business.
- Key details remain undecided and conditional on operational and regulatory readiness, including which exact funds will launch first, which blockchain networks will be used, and whether secondary trading will be available at launch.
- The move follows earlier pilots and partnerships and could speed settlement, automate recordkeeping, and let advisers and investors use fund holdings onchain, but broader rollout depends on evolving transfer-agent models and SEC-era rules.