Pittsburgh Firm Will Issue Tokenized Fund Shares
Local asset manager Federated Hermes plans to introduce tokenized investment products for clients by early 2027.
Updated on Oct. 13, 2026 in Investing
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Pittsburgh-based Federated Hermes announced a partnership with New York's Prometheum to launch tokenized fund shares by early 2027. This move aims to integrate blockchain-based assets into traditional brokerage accounts for financial advisers.
Why it matters
The firm intends to expand its liquidity funds franchise by utilizing blockchain technology for asset management. By partnering with a regulated clearing service, Federated Hermes seeks to make these digital assets accessible through familiar financial advisory channels.
Federated Hermes, which currently manages $911 billion in assets, will debut these tokenized shares early in 2027. The exact selection of funds to be digitized remains unknown as the company develops its strategy.
The players
Federated Hermes
A Pittsburgh-based global investment manager that oversees $911 billion in assets across liquidity and equity funds.
Prometheum
A New York-based financial firm providing regulated digital asset brokerage, custody, and clearing services.
The details
Federated Hermes plans to utilize Prometheum to handle the necessary brokerage, custody, and clearing services for these tokenized products. This infrastructure is intended to allow financial advisers to offer digital fund shares to investors through the same traditional platforms they currently use for standard asset management. The partnership bridges the gap between digital ledger technology and conventional financial advice, though specifics regarding the funds remain in development.
Timeline
October 13, 2026: The companies announced their partnership.
Early 2027: Federated Hermes expects to issue its first tokenized fund shares.
Money Landscape
This initiative marks the entry of a major manager into the growing sector of digital asset modernization. It follows an established market trend of large investment firms utilizing blockchain technology to streamline traditional liquidity and money market products.
While these shares are not yet available, investors should watch for updates from their financial advisers regarding new, tokenized fund options in 2027. Discuss the potential suitability of digital fund structures for your portfolio with a qualified financial professional.
The takeaway
The evolution of fund management continues as firms look toward blockchain for liquidity products. Keep an eye on your account statements and adviser communications in 2027 to see if these new digital options align with your financial goals.
What happens next
Federated Hermes plans to issue its first tokenized fund shares in early 2027.
Further reading
For more on the changing tools available to households, see our guide to Investing.
Live Poll
Do you trust blockchain-based versions of traditional financial investments as much as standard accounts?
