Federated Hermes to launch tokenised funds

Prometheum and Federated Hermes have announced a strategic partnership to develop and distribute tokenised securities funds through regulated US brokerage infrastructure, with the first product expected to launch in the first quarter of 2027.

The collaboration will combine Federated Hermes’ active investment management expertise with Prometheum’s digital securities infrastructure, aiming to expand access to traditional investment products through blockchain-based markets.

Under the planned arrangement, Prometheum’s SEC-registered, FINRA-member broker-dealer subsidiaries will support the issuance, distribution, custody, clearing and settlement of tokenised products.

ProFinancial, Inc. will support distribution, while Prometheum Capital LLC will provide custody, clearing and settlement services. The latter will also make Federated Hermes’ tokenised products available to introducing broker-dealers through its correspondent clearing platform.

Aaron Kaplan, founder and co-CEO of Prometheum, said the partnership could provide a model for issuing and distributing digital securities through established brokerage systems.

He said tokenised funds had largely been issued on platforms outside the mainstream brokerage system used by many American investors, adding that the collaboration aims to establish a route through regulated intermediaries.

Kevin Barr, director of digital assets at Federated Hermes, said demand for on-chain access to traditional investments was increasing among broker-dealer and registered investment adviser clients.

He added that working with Prometheum would allow the asset manager to distribute tokenised products through established intermediaries while maintaining its existing investment and operational standards.

The firms expect to bring their first tokenised fund product to market in Q1 2027.