Key Takeaways
- • Federated Hermes has entered a strategic alliance with Singapore-based Conduit Digital Holdings to establish a regulated tokenized fund structure in APAC, marking the firm's first digital-assets initiative in the region and expanding its institutional distribution channels.
- • The partnership will tokenize shares of a Conduit-managed fund that invests in FHI's Short-Term U.S. Prime Fund, offering tokenized access to institutional and wholesale investors across the Asia-Pacific region.
- • Federated Hermes leverages an established APAC footprint dating to 2010, with existing offices in Singapore, Tokyo, and Sydney, plus a planned Hong Kong office to deepen relationships with private banks, family offices, and institutional investors.
- • The initiative complements FHI's broader money market tokenization strategy, which includes a June 2026 GENIUS Act-aligned money market fund launch in the U.S. and an October 2025 partnership with UK-based Archax for tokenized UCITS money market fund access.
- • The regulated tokenization infrastructure represents a new AUM growth lever by broadening institutional access to FHI's money market capabilities through blockchain-based financial infrastructure.
Summary
Federated Hermes is deepening its Asia-Pacific expansion through a strategic partnership with Conduit Digital Holdings, a Singapore-based subsidiary of Conduit Group, to launch a regulated tokenized fund structure targeting institutional and wholesale investors across the region. Under the arrangement, a Conduit-managed fund will invest in FHI's Short-Term U.S. Prime Fund, with fund shares subsequently tokenized and distributed to qualified investors throughout APAC. This initiative represents FHI's first digital-assets initiative in the region and signals a material shift in how the firm intends to scale its institutional presence in Asia-Pacific.
The alliance builds on Federated Hermes' longstanding regional footprint, which dates to 2010 and currently includes offices in Singapore, Tokyo, and Sydney. The firm plans to open an additional office in Hong Kong to strengthen relationships with private banks, family offices, wealth intermediaries, and institutional investors. By integrating regulated tokenization infrastructure into this established presence, FHI aims to broaden access to its money market capabilities and expand institutional reach across multiple markets and investor segments simultaneously.
This APAC partnership represents a continuation of Federated Hermes' broader strategic pivot toward embedding its money market franchise within the digital-asset ecosystem. In June 2026, FHI launched its first GENIUS Act-aligned money market fund in the United States, designed to support stablecoin reserves and positioned for potential tokenization. Earlier, in October 2025, the firm partnered with UK-based Archax to provide tokenized access to three UCITS-regulated money market funds, marking its first non-U.S. digital-assets initiative. The Conduit partnership therefore extends this multi-market tokenization strategy into APAC, positioning FHI to capture institutional demand for regulated, blockchain-based financial infrastructure while leveraging its established money market distribution capabilities.
For institutional investors and hedge fund managers focused on alternative distribution channels and asset manager positioning, this initiative signals FHI's confidence in blockchain infrastructure maturation and regulatory clarity in Asia-Pacific. The use of a regulated tokenized structure, rather than unregulated tokenization, underscores institutional-grade compliance standards and suggests that digital-asset adoption among APAC institutional investors has reached a maturity level sufficient to support regulated fund distribution at scale.
The alliance builds on Federated Hermes' longstanding regional footprint, which dates to 2010 and currently includes offices in Singapore, Tokyo, and Sydney. The firm plans to open an additional office in Hong Kong to strengthen relationships with private banks, family offices, wealth intermediaries, and institutional investors. By integrating regulated tokenization infrastructure into this established presence, FHI aims to broaden access to its money market capabilities and expand institutional reach across multiple markets and investor segments simultaneously.
This APAC partnership represents a continuation of Federated Hermes' broader strategic pivot toward embedding its money market franchise within the digital-asset ecosystem. In June 2026, FHI launched its first GENIUS Act-aligned money market fund in the United States, designed to support stablecoin reserves and positioned for potential tokenization. Earlier, in October 2025, the firm partnered with UK-based Archax to provide tokenized access to three UCITS-regulated money market funds, marking its first non-U.S. digital-assets initiative. The Conduit partnership therefore extends this multi-market tokenization strategy into APAC, positioning FHI to capture institutional demand for regulated, blockchain-based financial infrastructure while leveraging its established money market distribution capabilities.
For institutional investors and hedge fund managers focused on alternative distribution channels and asset manager positioning, this initiative signals FHI's confidence in blockchain infrastructure maturation and regulatory clarity in Asia-Pacific. The use of a regulated tokenized structure, rather than unregulated tokenization, underscores institutional-grade compliance standards and suggests that digital-asset adoption among APAC institutional investors has reached a maturity level sufficient to support regulated fund distribution at scale.
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