Federated Hermes joins Wall Street's tokenization push with plans for first onchain fund shares
Asset manager Federated Hermes is partnering with Prometheum to launch tokenized fund shares on the blockchain. This move aims to modernize asset issuance and settlement, joining a growing trend among major financial institutions.
Why it matters
The adoption of blockchain technology by traditional asset managers signals a significant shift toward digital infrastructure in global finance.
The asset manager has partnered with plans to make the upcoming products available through traditional brokerages and financial advisers alongside New York-based digital securities infrastructure provider Prometheum , the companies told CoinDesk Tuesday.
The firm has not yet disclosed which funds it plans to tokenize or which blockchains they will use. Money market funds are a likely starting point, Kevin Barr, Federated Hermes' director of digital asset products and platform, told CoinDesk in an interview.
“There's enormous interest in the industry at large around tokenized money market funds, [and] it aligns very well with the ballast of our franchise, which has been our liquidity funds,” Barr said.
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