Federated Hermes enters strategic alliance with Conduit Digital Holdings on tokenized money market fund in Asia Pacific

Rhea-AI Summary

Federated Hermes (NYSE: FHI) announced a strategic alliance with Singapore-based Conduit Digital Holdings to create a regulated tokenized distribution structure for a money market fund in Asia-Pacific. A Conduit-managed fund will invest in the Federated Hermes Short-Term U.S. Prime Fund, with its shares then tokenized and offered to institutional and wholesale investors in APAC.

The Short-Term U.S. Prime Fund is an actively managed, UCITS-authorized money market fund investing in high-quality, U.S. dollar-denominated short-term debt. This is Federated Hermes’ first digital assets initiative in APAC and follows earlier tokenization partnerships and its announced Hong Kong expansion. Federated Hermes reported US$676.9 billion in money market assets and US$911.6 billion in total assets under management as of June 30, 2026.

News Explained

The alliance is announced to support a future launch: Conduit’s fund will invest in Federated Hermes’ Short-Term U.S. Prime Fund, then tokenize the Conduit fund’s shares for APAC investors, so the disclosed change is distribution of a Conduit fund interest rather than issuance of Federated Hermes common stock.

Market Context

FHI's 0.82% 24-hour reaction to its Q2 2026 earnings provides a prior platform reference for this al...

Analysis

FHI's 0.82% 24-hour reaction to its Q2 2026 earnings provides a prior platform reference for this alliance. The announcement adds APAC tokenization exposure, while low short positioning and recent Net Selling remain relevant context.

Key Figures

Money market innovation history: over 50 years Money market assets: US$676.9 billion Assets under management: $911.6 billion +4 more

7 metrics

Money market innovation history over 50 years Federated Hermes money market business

Money market assets US$676.9 billion As of 30 June 2026

Assets under management $911.6 billion As of June 30, 2026

Institutional and intermediary clients more than 11,000 Worldwide

Digital assets strategy appointment May 2026 Kevin Barr appointed director

Employees more than 2,000 Federated Hermes worldwide

UCITS money market funds three Funds with tokenized access through Archax

Historical Context

5 past events · Latest: Aug 17 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 17	Portfolio data update	Neutral	+0.1%	Month-end portfolio composition and performance data became available online
Aug 10	Dividend declaration	Positive	-0.0%	FMN declared a monthly tax-free dividend of $0.0450 per share
Jul 30	Earnings report	Positive	+0.8%	Q2 EPS rose to $1.38 as revenue increased 18% year over year
Jul 15	Portfolio data update	Neutral	+2.1%	Month-end portfolio composition and performance data became available online
Jul 10	Dividend declaration	Positive	+1.1%	FMN declared a tax-free dividend of $0.0450 per share

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent announcements produced mostly nonnegative 24-hour reactions, with one negative reaction in the five-event record.

Key Terms

money market fund, ucits-authorized, commercial paper, certificates of deposit, +2 more

6 terms

money market fund financial

"The Federated Hermes Short-Term U.S. Prime Fund is an actively managed"

A money market fund is a pooled investment that aims to keep your cash safe while earning a small return by buying very short-term loans and government or corporate IOUs. Think of it as a high-quality parking spot for cash: it’s designed for quick access and capital preservation rather than big gains, so investors use it to hold emergency funds, settle trades, or earn modest interest while awaiting other opportunities.

ucits-authorized regulatory

"is an actively managed, UCITS-authorized money market fund"

A UCITS-authorized fund is an investment fund that a European regulator has approved under the EU’s UCITS rules, a common legal framework for mutual funds and exchange-traded funds. That authorization means the fund meets standardized rules on diversification, liquidity, risk limits and investor disclosure, and can be marketed across EU/EEA countries under a passport system. For investors, the label signals a regulated product with consistent protections and reporting.

commercial paper financial

"short-term debt instruments like commercial paper and certificates of deposit"

Short-term IOUs issued by companies to raise cash quickly, sold to investors for a fixed, brief period (usually up to a few months) and repaid with interest at maturity. Think of it as a business borrowing from the public without putting up collateral, like a friend asking to borrow money for a few weeks with a promise to pay back a bit more. Investors watch commercial paper to gauge a company’s short-term funding health and credit risk; difficulty issuing it or rising yields can signal liquidity stress or higher perceived risk.

certificates of deposit financial

"commercial paper and certificates of deposit"

A certificate of deposit (CD) is a bank product where you deposit money for a fixed period in exchange for a guaranteed interest rate; think of it as lending your savings to a bank for a set time in return for a promised return. It matters to investors as a low-risk, predictable place to park cash, earn higher interest than a checking account, and compare returns against other options — but withdrawing early usually incurs a penalty and government insurance typically covers balances up to set limits.

distributed ledger technology (dlt) technical

"By leveraging distributed ledger technology (DLT)"

A distributed ledger technology (DLT) is a secure, shared electronic system that records transactions across many separate computers so everyone holds the same up-to-date record — like a group Google Doc for financial entries where changes are locked in and time-stamped. It matters to investors because it can reduce middlemen, speed settlement, cut costs, and enable new types of assets and services, while also creating new operational and regulatory risks that affect company value.

stablecoin financial

"designed to support stablecoin reserve use cases"

A stablecoin is a type of digital currency designed to keep its value steady, often by being backed by traditional assets like money or commodities. For investors, stablecoins offer a reliable way to move money quickly across digital platforms without the value fluctuations common with other cryptocurrencies, making them useful for saving, trading, or transferring funds with less risk of sudden losses.

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• Builds on over 50-years of money markets innovation
• Further evidence of commitment to evolving Digital Assets Product and Strategy
• Continues growth of APAC product offering following recent announcement of Hong Kong expansion plans

PITTSBURGH, Sept. 1, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today announced a strategic alliance with Singapore-based Conduit Digital Holdings Pte Ltd, part of the Conduit Group, to support the launch of a regulated tokenized distribution structure in APAC. Under this arrangement, the Conduit-managed investment fund will invest in the Federated Hermes Short-Term U.S. Prime Fund. Shares of the Conduit fund, which provide exposure to the underlying Federated Hermes fund, will then be tokenized and offered to institutional and wholesale investors, in APAC.

For over 50 years, Federated Hermes has been a leader in money market innovation with US$676.9 billion¹ in money market assets under management. The Federated Hermes Short-Term U.S. Prime Fund is an actively managed, UCITS-authorized money market fund that aims to provide current income while maintaining daily liquidity and a stable principal value. It invests primarily in high-quality, U.S. dollar-denominated short-term debt instruments like commercial paper and certificates of deposit.

Federated Hermes' strategic alliance with Conduit builds on a series of recent money market initiatives including: an alliance with UK-based Archax, an FCA-regulated digital securities exchange, to provide tokenized access to three UCITS money market funds; participation in an industry-wide, regulated initiative using mirrored tokenization to enhance transferability, collateral utility and real-time tracking of fund shares; and the launch of Federated Hermes' first GENIUS Act-aligned money market fund in the US, designed to support stablecoin reserve use cases, with potential for future tokenization/tokenized share classes.

Federated Hermes' approach to regulated digital assets, tokenization and next-generation investment infrastructure is led by Kevin Barr, who was appointed as Director, Digital Assets Product and Platform Strategy in May 2026.

This announcement represents Federated Hermes' first digital assets initiative in APAC, demonstrating a continued commitment to the growing digital asset ecosystem in the market by enhancing visibility and supporting customer needs through its role as the underlying asset manager to this tokenized offering. Earlier this year, Federated Hermes announced plans to expand its Asia-Pacific footprint - which includes existing offices in Singapore, Tokyo and Sydney - with the opening of a Hong Kong office as part of a long-term growth strategy to deepen relationships with private banks, family offices, wealth intermediaries and institutional investors across the region.

¹As of 30 June 2026

Kevin Barr, Director, Digital Assets Product and Platform Strategy at Federated Hermes comments: "We are excited to support innovative cash management solutions that better serve client needs, building on our legacy of innovation in the money market fund space. Vaults represent a compelling evolution in investment management, and we see a significant opportunity to bring our legacy of trust and fiduciary responsibility to this emerging space. We continue to explore on-chain distribution opportunities to enhance flexibility and accessibility, while preserving access to the stability and yield characteristics typically associated with money market funds. Today's announcement reflects our continued commitment to building a larger digital asset presence, leveraging one of our core strengths in liquidity management.

Jim Roland, Head of Business Development, Asia Pacific and Australia at Federated Hermes further added: "Tokenized products represent a new and evolving way to engage with our clients, combining our investment expertise with Conduit's MAS-regulated end-to-end tokenization capabilities and regional distribution network. Our customers in the APAC market are leading worldwide adoption of tokenization, making this strategically important region a highly receptive market the natural choice for the launch our latest digital assets initiative."

Richard Schroder, Co-Founder and CEO of Conduit Digital Holdings commented: "We are delighted to work with Federated Hermes to have their U.S. Prime Fund as the anchor product of the CDH tokenized multicurrency money market offering. We are committed to unlocking the full utility of these tokens - moving beyond simple settlement to enable use as collateral, multicurrency management, and integration into AI agentic treasury management systems. This is where the real efficiency gains for our customers lie, and we are building the infrastructure to make that a reality." 

Chris O'Meara, CEO of Conduit Asset Management and Chairman of the Conduit Group, added: "This collaboration with Federated Hermes marks a defining moment for the Conduit Group. Conduit Digital Holdings sits at the heart of our vision for the future of asset management in Asia-Pacific - bringing institutional-grade products onchain through regulated, MAS-licensed infrastructure. As investment manager to the fund, Conduit Asset Management is proud to combine our fiduciary oversight with the strength of an active manager with over 50 years of money market leadership. The Group is fully committed to Conduit Digital Holding's growth, and this launch is only the first step in building the institutional access layer for tokenized real-world assets across the region."

For further information, please contact:

Federated Hermes
press@federatedhermes.com 

Conduit
cdh@conduit.group

This is a corporate communication and is not to be construed as a solicitation or an offer to buy or sell any securities in the US. Shares of the fund have not been and will not be registered under the US Securities Act of 1933, as amended (the "1933 Act") or the securities laws of any of the states of the US. The Shares may not be offered or sold directly or indirectly in the US or to or for the account or benefit of any US Person.

About Federated Hermes

Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $911.6 billion in assets under management, as of June 30, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com.

About Conduit Digital Holdings

Conduit Digital Holdings (CDH) is a specialized digital assets firm dedicated to the tokenization of Real-World Assets. By leveraging distributed ledger technology (DLT), we work with investment managers to provide investors with fractional access to high-value assets with enhanced liquidity, automated compliance, and real-time settlement. CDH was created by Conduit Group in Singapore, a leading independent investment and financial services firm.
Website: https://www.conduit.group/

View original content:https://www.prnewswire.com/news-releases/federated-hermes-enters-strategic-alliance-with-conduit-digital-holdings-on-tokenized-money-market-fund-in-asia-pacific-302866801.html

SOURCE Federated Hermes, Inc.

FAQ

What did Federated Hermes (NYSE: FHI) announce on September 1, 2026 with Conduit Digital Holdings?

Federated Hermes announced a strategic alliance with Conduit Digital Holdings to support a regulated tokenized distribution structure in APAC. According to Federated Hermes, a Conduit-managed fund will invest in the Federated Hermes Short-Term U.S. Prime Fund, whose exposure will then be tokenized for institutional and wholesale investors.

How will the tokenized money market fund structure between Federated Hermes (FHI) and Conduit work in APAC?

The Conduit-managed investment fund will invest in the Federated Hermes Short-Term U.S. Prime Fund, then tokenize its shares. According to Federated Hermes, these tokenized interests will provide exposure to the underlying fund and be offered to institutional and wholesale investors across the Asia-Pacific region under a regulated structure.

Is the new Conduit tokenized money market fund linked to Federated Hermes available to U.S. investors?

The tokenized fund is aimed at institutional and wholesale investors in APAC and not U.S. investors. According to Federated Hermes, shares of the fund are not registered under the U.S. Securities Act of 1933 and may not be offered or sold in the U.S. or to U.S. persons.

What role does the Federated Hermes Short-Term U.S. Prime Fund play in the Conduit Digital Holdings partnership?

The Federated Hermes Short-Term U.S. Prime Fund serves as the underlying anchor investment for the Conduit-managed fund. According to Federated Hermes, this UCITS-authorized, actively managed money market fund provides exposure that will be tokenized and distributed to institutional and wholesale investors in the Asia-Pacific region.

How does this APAC tokenization alliance fit into Federated Hermes’ (FHI) broader digital assets strategy?

The alliance marks Federated Hermes’ first digital assets initiative in APAC and extends prior tokenization efforts. According to Federated Hermes, it follows partnerships with Archax, participation in a mirrored tokenization initiative, and a GENIUS Act-aligned money market fund launched for stablecoin reserve use cases.

What are Federated Hermes’ key assets under management figures related to this tokenization initiative?

Federated Hermes reported US$676.9 billion in money market assets and US$911.6 billion in total assets under management as of June 30, 2026. According to Federated Hermes, this long-standing scale in liquidity and money markets underpins its role as underlying asset manager for the new tokenized APAC offering.

Why is the Asia-Pacific region important for Federated Hermes’ tokenized money market strategy?

Federated Hermes highlights APAC clients as leaders in tokenization adoption, making the region strategically important. According to Federated Hermes, this initiative complements existing offices in Singapore, Tokyo and Sydney and its planned Hong Kong office to deepen relationships with private banks, wealth intermediaries and institutional investors.