Federated Hermes and Prometheum plan to bring their first tokenized fund product to market in Q1 2027, according to an October 13 joint announcement. The effort targets access through traditional brokerage accounts and financial advisers, rather than only crypto-native platforms.

The issuance model is the important change. Federated Hermes intends to issue tokenized fund share classes itself, digital-assets executive Kevin Barr told CoinDesk. Earlier arrangements involved third parties creating tokenized representations of the asset manager's existing investment products.

Brokerage infrastructure

Under the planned collaboration, Prometheum subsidiary ProFinancial would support distribution. Prometheum Capital would provide custody, clearing and settlement for its customers, while its correspondent clearing platform would make the products available to introducing broker-dealers. The companies describe those subsidiaries as SEC-registered, FINRA-member broker-dealers.

Federated Hermes reported $911.6 billion in assets under management as of June 30, 2026. That figure describes the firm's overall business, not assets committed to the tokenized products.

What remains undecided

The companies have not disclosed the specific funds or blockchains, CoinDesk reported. Barr described money market funds as a likely starting point, but that is not a confirmed product selection. The first-quarter timetable is an expectation, not a completed launch.

The practical test is whether directly issued onchain shares can reach investors through existing brokerage relationships. A named distribution and custody structure makes the plan more concrete, but investors still need product terms and an actual launch before judging access or utility.