Key Takeaways
- • Prometheum Inc. and Federated Hermes, Inc. (NYSE: FHI) announced a strategic partnership to issue and distribute tokenized securities funds through Prometheum's SEC-registered, FINRA-member broker-dealer infrastructure.
- • Prometheum Capital LLC will custody, clear, and settle Federated Hermes' tokenized products and make them available to introducing broker-dealers through its correspondent clearing platform.
- • ProFinancial, Inc. will support distribution, and the firms expect to bring the first tokenized fund product to market in Q1 2027.
- • Federated Hermes, which reported $911.6 billion in assets under management as of June 30, 2026, is targeting broker-dealer and RIA clients seeking on-chain access to traditional investments.
- • The partnership aims to bridge traditional and digital asset markets by offering tokenized funds, particularly money market funds, through established brokerage accounts and advisor relationships.
Summary
Prometheum Inc., a market infrastructure provider for crypto assets, and Federated Hermes, Inc. (NYSE: FHI), a global active investment manager, announced a strategic partnership to expand the reach of tokenized securities products through Prometheum's SEC-registered, FINRA-member broker-dealer market infrastructure, according to the companies' joint announcement published via BusinessWire on October 13, 2026.
Under the planned collaboration, Federated Hermes will contribute its active management expertise and a growing suite of tokenized solutions in global markets. Prometheum will provide digital securities infrastructure through its SEC-registered, FINRA-member broker-dealer subsidiaries. ProFinancial, Inc. will support distribution of tokenized products, while Prometheum Capital LLC will custody, clear, and settle products on behalf of its customers and make Federated Hermes' tokenized products available to introducing broker-dealers through its correspondent clearing platform.
Aaron Kaplan, founder and co-CEO of Prometheum Inc., described the partnership as a blueprint for how the securities industry can issue and distribute digital securities. He said tokenized funds have primarily been issued on platforms outside the mainstream brokerage system where most Americans invest, and that pairing Federated Hermes with Prometheum's broker-dealers is intended to create a path the industry can follow.
Kevin Barr, Director of Digital Assets at Federated Hermes, said tokenized funds are a logical next step for broker-dealer and RIA clients who increasingly seek on-chain access to traditional investments. He said the arrangement allows Federated Hermes to maintain its fiduciary focus by distributing products through regulated and established intermediaries.
The announcement comes as tokenized funds, particularly money market funds, have emerged as a notable use case in the tokenized asset market, with early issuances demonstrating market interest and value for end investors. The firms expect to bring the first tokenized fund product to market in Q1 2027. Federated Hermes reported $911.6 billion in assets under management as of June 30, 2026, serving more than 11,000 institutions and intermediaries worldwide.
Under the planned collaboration, Federated Hermes will contribute its active management expertise and a growing suite of tokenized solutions in global markets. Prometheum will provide digital securities infrastructure through its SEC-registered, FINRA-member broker-dealer subsidiaries. ProFinancial, Inc. will support distribution of tokenized products, while Prometheum Capital LLC will custody, clear, and settle products on behalf of its customers and make Federated Hermes' tokenized products available to introducing broker-dealers through its correspondent clearing platform.
Aaron Kaplan, founder and co-CEO of Prometheum Inc., described the partnership as a blueprint for how the securities industry can issue and distribute digital securities. He said tokenized funds have primarily been issued on platforms outside the mainstream brokerage system where most Americans invest, and that pairing Federated Hermes with Prometheum's broker-dealers is intended to create a path the industry can follow.
Kevin Barr, Director of Digital Assets at Federated Hermes, said tokenized funds are a logical next step for broker-dealer and RIA clients who increasingly seek on-chain access to traditional investments. He said the arrangement allows Federated Hermes to maintain its fiduciary focus by distributing products through regulated and established intermediaries.
The announcement comes as tokenized funds, particularly money market funds, have emerged as a notable use case in the tokenized asset market, with early issuances demonstrating market interest and value for end investors. The firms expect to bring the first tokenized fund product to market in Q1 2027. Federated Hermes reported $911.6 billion in assets under management as of June 30, 2026, serving more than 11,000 institutions and intermediaries worldwide.
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