Federated Hermes Partners With Prometheum to Issue Tokenized Securities Funds

Federated Hermes and Prometheum have formed a strategic partnership to issue and distribute tokenized securities funds through Prometheum’s SEC-registered, FINRA-member broker-dealer infrastructure. The companies announced the arrangement on October 13, 2026, and expect the first tokenized fund product to reach the market in the first quarter of 2027.

The planned rollout is aimed at putting on-chain fund access into existing brokerage accounts and adviser relationships, rather than creating a distribution route limited to crypto-native platforms. Ledger Insights reported that tokenized money-market funds are expected to be the initial product category.

The announcement sets out a division of responsibilities across Prometheum’s regulated subsidiaries, from issuance through post-trade functions. It does not identify a specific fund in the companies’ release, and the Q1 2027 timetable remains an expectation rather than a completed launch.

Prometheum’s broker-dealer infrastructure

Prometheum said its ProFinancial subsidiary will handle the issuance and distribution of the tokenized securities funds. It said Prometheum Capital will provide custody, clearing and settlement, as well as connections to introducing broker-dealers.

The proposed structure uses conventional brokerage infrastructure and intermediated access through introducing broker-dealers rather than relying solely on direct participation through digital-asset platforms.

Prometheum described the arrangement as spanning issuance, distribution, custody, clearing and settlement within its broker-dealer platform.

First product expected in Q1 2027

The companies expect their first tokenized fund product to come to market in the first quarter of 2027, according to Prometheum’s announcement. The stated objective is to offer on-chain access through investors’ existing brokerage accounts and their adviser relationships.

Neither company’s announcement names the fund expected to launch first. Ledger Insights, reporting a day later, identified tokenized money-market funds as the expected opening category and said the effort is directed toward conventional broker-dealers and advisers.

Money-market funds are therefore the reported starting point, not a product confirmation from the companies’ joint announcement. The distinction matters as the partnership moves from a broad plan for tokenized securities funds toward its first proposed market offering.

The Q1 2027 target gives the firms a defined initial milestone. Until then, the partnership remains a planned distribution and infrastructure arrangement, with the eventual product rollout expected to test how tokenized fund access can be incorporated into established brokerage relationships.

Federated Hermes’ scale and distribution

Federated Hermes reported $911.6 billion in assets under management as of June 30, 2026, and said it serves more than 11,000 institutions and intermediaries worldwide. Those figures give the initiative a substantial asset-management participant as it seeks to reach conventional brokerage and advisory channels.

The partnership’s focus is not simply on making a fund available on-chain. Its stated distribution premise is that investors could access the products through accounts and relationships already used in the securities market. For advisers and introducing broker-dealers, Prometheum Capital is intended to provide the connectivity named in the announcement.

Federated Hermes brings the fund-management scale cited by Prometheum, while Prometheum supplies the issuance, distribution, custody, clearing and settlement components set out for the rollout. The companies have tied those functions to a first-product target in the opening quarter of 2027.

Whether the first offering is a tokenized money-market fund as reported by Ledger Insights will become clearer as that launch window approaches. For now, the announcement marks a plan to channel tokenized securities funds through registered broker-dealer infrastructure and into existing adviser-led and brokerage-account distribution.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.