Federated Hermes Breaks Ranks: $911B Asset Manager to Launch First Onchain Fund Shares

Federated Hermes, the Pittsburgh-based asset manager with $911 billion in assets under management, announced on Wednesday a partnership with blockchain platform Prometheum to launch its first onchain fund shares. The initiative will bring tokenized share classes of its funds to traditional brokerage accounts, marking a significant step in the convergence of traditional finance and blockchain technology.

The move comes amid a broader Wall Street push toward tokenization, with major firms like BlackRock, Franklin Templeton, and JPMorgan exploring similar initiatives. Federated Hermes' entry signals growing institutional confidence in blockchain-based financial products. Prometheum, a registered broker-dealer and alternative trading system, will provide the infrastructure to issue and trade these tokenized shares. Neither company disclosed a specific timeline or which funds would be included in the initial rollout.

The development could accelerate the adoption of tokenized assets by making them accessible through existing brokerage channels, potentially increasing liquidity and efficiency. However, regulatory hurdles remain, as the SEC continues to scrutinize crypto-related offerings. Industry observers will watch closely to see if other asset managers follow suit and how regulators respond to this latest foray into onchain finance.