Federated Hermes Plans First Tokenized Fund Shares for 2027

Asset manager Federated Hermes plans to issue its first tokenized fund shares in early 2027, joining a growing list of traditional finance firms moving investment products onchain.

The $911 billion Pittsburgh-based firm intends to issue the blockchain-based share classes itself, moving beyond previous arrangements where third parties tokenized its existing products. Kevin Barr, the firm’s director of digital asset products and platform, stated the move represents a more direct approach to tokenization.

Federated Hermes is partnering with digital asset firm Prometheum, which will provide regulated brokerage, custody, and clearing services. This infrastructure is designed to bring the tokenized products to financial advisors and their clients through traditional brokerage accounts.

The announcement signals continued institutional adoption of blockchain technology for traditional finance products, following similar tokenization initiatives from other major Wall Street firms.