Key Takeaways
- • Federated Hermes, which manages $911.6 billion in assets as of June 30, 2026, has partnered with Prometheum to develop tokenized funds for U.S. brokerage distribution, with the first product expected in Q1 2027.
- • Prometheum Capital will provide custody, clearing and settlement, while ProFinancial will handle distribution within Prometheum's network.
- • Introducing broker-dealers will access Federated Hermes' tokenized offerings through Prometheum Capital's correspondent clearing platform.
- • Kevin Barr, Federated Hermes' director of digital assets, said demand from broker-dealers and RIAs for on-chain access to traditional investments drove the partnership.
- • Prometheum co-CEO Aaron Kaplan called the arrangement a "blueprint" for issuing and distributing digital securities through securities firms.
Summary
Federated Hermes, which reported $911.6 billion in assets under management as of June 30, 2026, has partnered with Prometheum to develop tokenized funds for U.S. brokerage distribution. According to the Oct. 13 announcement, the first product is expected to reach the market in the first quarter of 2027. Federated Hermes will supply investment management expertise, while Prometheum's SEC-registered, FINRA-member broker-dealer subsidiaries will provide the securities infrastructure.
Under the arrangement, ProFinancial will support distribution within Prometheum's network, and Prometheum Capital will custody, clear and settle the products for its customers. Prometheum Capital will also make Federated Hermes' offerings available to introducing broker-dealers through its correspondent clearing platform. The companies describe a model built on brokerage accounts and adviser relationships, intended to extend access beyond platforms that primarily serve crypto investors.
Barr tied the partnership to demand from broker-dealers and registered investment advisers for on-chain access to traditional investments, stating that "tokenized funds are the logical next step" for those clients. He said Federated Hermes intends to distribute the products through regulated, established intermediaries and apply the same operational and investment standards used across its fund lineup. Kaplan said tokenized funds had largely been issued outside the brokerage system used by most Americans, and described the partnership as a path the industry can follow.
Prometheum introduced its brokerage distribution infrastructure on May 25, which already offers correspondent clearing, custody, execution and recordkeeping for third-party broker-dealers, according to crypto.news. Federated Hermes has also participated in earlier tokenized fund work, including its identification in July 2025 reporting on the BNY–Goldman money market initiative as an initial participant. The firm provides strategies to more than 11,000 institutions and intermediaries worldwide, according to its corporate description.
Under the arrangement, ProFinancial will support distribution within Prometheum's network, and Prometheum Capital will custody, clear and settle the products for its customers. Prometheum Capital will also make Federated Hermes' offerings available to introducing broker-dealers through its correspondent clearing platform. The companies describe a model built on brokerage accounts and adviser relationships, intended to extend access beyond platforms that primarily serve crypto investors.
Barr tied the partnership to demand from broker-dealers and registered investment advisers for on-chain access to traditional investments, stating that "tokenized funds are the logical next step" for those clients. He said Federated Hermes intends to distribute the products through regulated, established intermediaries and apply the same operational and investment standards used across its fund lineup. Kaplan said tokenized funds had largely been issued outside the brokerage system used by most Americans, and described the partnership as a path the industry can follow.
Prometheum introduced its brokerage distribution infrastructure on May 25, which already offers correspondent clearing, custody, execution and recordkeeping for third-party broker-dealers, according to crypto.news. Federated Hermes has also participated in earlier tokenized fund work, including its identification in July 2025 reporting on the BNY–Goldman money market initiative as an initial participant. The firm provides strategies to more than 11,000 institutions and intermediaries worldwide, according to its corporate description.
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