Federated Hermes plans tokenized fund shares with Prometheum

Federated Hermes plans to issue tokenized fund share classes in early 2027 with Prometheum providing regulated brokerage and custody infrastructure, a move that would put blockchain-based shares within reach of traditional brokerage and adviser channels. CoinDesk’s report says Federated Hermes intends to issue the share classes itself, rather than have a third party tokenize an existing product. The companies announced their partnership on Oct. 13.

The plan is not yet a product launch. Federated Hermes has not named the fund or blockchain, and neither company has described the token contract, transfer restrictions, subscription and redemption process, or how onchain ownership will reconcile with the fund’s official register. Those details determine how a token represents a legally recognized fund share and how transfers are controlled.

Who will issue, distribute and service the shares?

Federated Hermes is the asset manager and plans to issue the tokenized share classes; Prometheum is supplying the securities infrastructure. Under the partnership, ProFinancial will support product distribution, while Prometheum Capital will provide custody, clearing and settlement for its customers. Prometheum Capital will also make the products available to introducing broker-dealers through its correspondent clearing platform, according to Prometheum’s announcement.

That division matters: “onchain” describes the planned share format, while the announced access path runs through broker-dealers and adviser relationships. The release says Prometheum’s broker-dealer subsidiaries are SEC-registered and FINRA members. It does not say that investors will receive tokens directly into self-custody wallets, or that token transfers will be permissionless. Nor does it identify which entity will operate a transfer agent for these shares.

Which fund and blockchain are planned?

Neither has been disclosed. Federated Hermes director of digital asset products and platform Kevin Barr told CoinDesk that money market funds are a likely starting point, citing the firm’s liquidity business and industry interest. That is an indication of direction, not a confirmed fund selection. The firms’ announcement describes the first product as a tokenized fund but gives no ticker, fund name, chain, token standard or smart-contract design.

Federated Hermes has previously worked with Archax, Goldman Sachs and Conduit Digital on tokenized representations of existing investment products, CoinDesk reported. Barr said the new effort is intended to go further by having the asset manager issue tokenized share classes itself. That changes the issuer’s role in the digital representation; the public details do not yet establish whether the token will be the authoritative ownership record or how it will interact with conventional fund books.

When could investors access the first product?

The companies expect to bring the first tokenized fund product to market in the first quarter of 2027. The release frames this as an expectation, not a completed launch or guaranteed date. Until the fund, chain and transfer controls are published, investors cannot assess its onchain operating model, including how subscriptions, redemptions, restricted transfers and settlement failures will be handled.

For now, the confirmed change is organizational: Federated Hermes is partnering with a broker-dealer network to issue tokenized fund products through conventional investment channels. The mechanics that would make a share transferable and enforceable onchain remain undisclosed.

References

• CoinDesk’s report — coindesk.com
• Prometheum’s announcement — prometheum.com