Federated Hermes taps Prometheum for tokenized funds by Q1 2027

Federated Hermes, an investment manager with $911.6 billion in assets under management, has partnered with crypto infrastructure provider Prometheum to distribute tokenized funds through US brokerage accounts and adviser relationships, according to Cryptobriefing. The first product is expected in the first quarter of 2027.

The announced collaboration pairs Federated Hermes’ investment management business with Prometheum’s SEC-registered, FINRA-member broker subsidiaries, the firms said in a Tuesday announcement. Federated Hermes reported the $911.6 billion figure as of June 30, 2026, Crypto.news reported.

Key facts

• Federated Hermes manages $911.6 billion in assets, reported as of June 30, 2026.
• The first tokenized fund product is expected in the first quarter of 2027.
• Prometheum subsidiary ProFinancial will support distribution of the products.
• Prometheum Capital will provide custody, clearing and settlement, and will make the funds available to introducing brokers through its correspondent clearing platform.
• The announcement did not identify the first fund, its underlying investments or the blockchain it would use.

Roles split between distribution and custody

Under the arrangement, Federated Hermes supplies investment management expertise while Prometheum’s registered broker-dealer subsidiaries provide the securities infrastructure. Distribution sits with ProFinancial; custody, clearing and settlement sit with Prometheum Capital.

Introducing broker-dealers would reach the products through Prometheum Capital’s correspondent clearing platform, using that clearing infrastructure, the firms said. Crypto.news reported that the stated aim is to extend access beyond platforms primarily serving crypto investors, using financial intermediaries to offer and service the products.

Kevin Barr, Federated Hermes’ director of digital assets, framed the move as a response to demand from broker-dealers and registered investment advisers for blockchain-based access to traditional investments. He said the firm intends to distribute the products through regulated, established intermediaries while applying the operational and investment standards used across its fund lineup.

Aaron Kaplan, Prometheum’s founder and co-CEO, said tokenized funds had largely been issued on platforms outside the mainstream brokerage system where most Americans invest. He described the partnership as a blueprint for issuing and distributing digital securities through securities firms, pairing an asset manager of Federated Hermes’ caliber with Prometheum’s SEC-registered broker-dealers for offering, custody and clearing services.

Prometheum’s brokerage build-out

Crypto.news noted that Prometheum introduced brokerage distribution infrastructure on May 25, allowing broker-dealers and registered investment advisers to offer tokenized securities and crypto assets through traditional brokerage accounts. At that time, Kaplan described distribution as an unresolved problem for blockchain-based securities, saying issuers had created tokenized products without a mainstream channel to reach investors at scale.

Prometheum has described its network as providing correspondent clearing, custody, execution and recordkeeping for third-party broker-dealers. Its corporate description also lists Prometheum ATS for secondary-market trading, Prometheum Coinery as an SEC-registered digital transfer agent, ProFinancial for issuance and distribution, and Prometheum Capital for custody, clearing and settlement. The Federated Hermes announcement did not specify whether the initial product would support secondary trading at launch.

Why it matters

The partnership adds to the overlap between crypto firms and traditional asset managers, moving tokenized funds into the brokerage accounts and adviser relationships most US investors already use rather than leaving them on crypto-native venues. For broker-dealers and RIAs, it offers a route to offer tokenized products without building new infrastructure, while Federated Hermes gains a regulated distribution channel.

Both firms pointed to money market funds as an established area of activity in the tokenized asset market and a demonstrated source of investor interest in blockchain-based access to traditional investments. Federated Hermes is not new to the area: Crypto.news reported that in July 2025 it was among the asset managers participating in the initial launch of the BNY-Goldman money market initiative, where BNY’s LiquidityDirect platform provided institutional access to money market funds and Goldman Sachs’ blockchain system used digital tokens to record ownership of fund shares.

Other recent fund-distribution announcements have kept regulated intermediaries in the chain. Crypto.news reported that in a Sept. 17 agreement, WisdomTree and MoonPay outlined planned US fund access for eligible investors in WisdomTree’s WTGXX tokenized Treasury money market fund, with WisdomTree Securities continuing to distribute the fund and MoonPay supplying blockchain technology and customer access. Prometheum has separately discussed the ownership structure of tokenized US equities under a proposed arrangement with HashKey and Velocity Capital.

What to watch

The clearest next data point is the identity and structure of the first product: the firms have not named the fund, its underlying investments, the blockchain it will use, or whether secondary trading will be supported at launch. The first quarter of 2027 launch window is the timeline both outlets reported.

Disclaimer: This article is for information only and is not investment, financial or trading advice. Cryptocurrency prices are highly volatile. Always do your own research.

Sources: Crypto Briefing, Crypto.news