Federated Hermes and Prometheum Target 2027 for Tokenized Funds

The collaboration leverages Federated Hermes’ investment expertise alongside Prometheum’s SEC-registered infrastructure. Under the agreement, Prometheum’s subsidiaries will handle custody, clearing, and settlement, while ProFinancial supports the distribution of these products. This model intends to allow broker-dealers and registered investment advisers to offer on-chain access to traditional investments through the same brokerage accounts their clients already use.

Kevin Barr, director of digital assets at Federated Hermes, identified the shift as a response to growing demand from advisers for blockchain-based access to traditional markets. Prometheum co-CEO Aaron Kaplan framed the deal as a necessary blueprint for the industry, noting that previous tokenized offerings often existed outside the regulated brokerage system. By utilizing Prometheum’s correspondent clearing platform, the firms aim to integrate these digital products into the existing securities infrastructure, ensuring they meet the standards applied to the broader Federated Hermes fund lineup.