Overview
- Federated Hermes told reporters Tuesday that it intends to issue its own tokenized fund share classes in early 2027, moving beyond earlier arrangements where third parties created digital wrappers for its funds.
- The firm has signed a partnership with Prometheum so Prometheum's SEC‑registered broker‑dealer and correspondent clearing network can custody, clear and make the tokenized shares available to broker‑dealers and financial advisers.
- Federated Hermes is most likely to start with money market or liquidity products, and its Digital Treasury Fund (ticker OFFXX) has been set up as the leading testbed for tokenized share classes as rules mature.
- Full migration of share records to onchain ledgers depends on the development of digital transfer agent models that can legally and technically record ownership, so the launch window remains conditional rather than final.
- The move shifts operational responsibility from third‑party issuers to the asset manager and could speed settlement and automated recordkeeping for cash‑like funds, while also creating new custody, compliance and distribution work for brokerages and advisers.