$900 billion asset manager Federated Hermes taps crypto infrastructure to bring tokenized funds to brokerages

Federated Hermes, an investment manager with $911.6 billion in assets under management, has partnered with crypto infrastructure provider Prometheum to bring tokenized funds to brokerage clients. The first product is expected in the first quarter of 2027. The planned collaboration pairs Federated Hermes’ investment management business with Prometheum’s SEC registered, FINRA member broker subsidiaries, according to an announcement Tuesday. The firms aim to make tokenized products available through the brokerage accounts and adviser relationships investors already use. Prometheum subsidiary ProFinancial will support distribution. Prometheum Capital will provide custody, clearing and settlement for its customers and make Federated Hermes’ tokenized products 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. “Tokenized funds are the logical next step for our broker-dealer and RIA clients, who increasingly see demand for on-chain access to traditional investments,” said Kevin Barr, director of digital assets at Federated Hermes. Barr said the partnershi...