Prometheum and Federated Hermes Announce Strategic Partnership to Issue Tokenized Securities Funds
The planned distribution model connects tokenized investments with broker-dealers and registered representatives serving U.S. investors.
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Collaboration to extend digital securities investment products beyond crypto-native platforms to broker-dealers and registered representatives serving U.S. investors
Through this planned collaboration, Federated Hermes will bring its deep active management expertise, a long-established commitment to fiduciary responsibilities, along with 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. Additionally, 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.
"We view this partnership as a blueprint for how the securities industry can issue and distribute digital securities," said Aaron Kaplan, founder and co-CEO of Prometheum Inc. "Until now, tokenized funds have primarily been issued on platforms that sit outside the mainstream brokerage system where most Americans invest. By pairing an asset manager of Federated Hermes' caliber with Prometheum’s SEC-registered broker-dealers for offering, custody and clearing services provided to our customers, we are looking to create the path the industry can follow."
"Tokenized funds are the logical next step for our broker-dealer and RIA clients, who increasingly see demand for on-chain access to traditional investments,” said Kevin Barr, Director of Digital Assets, Federated Hermes. "Working with Prometheum on this effort allows Federated Hermes to continue its history of fiduciary focus by distributing products through regulated and established intermediaries, with the same level of operational and investment rigor used across its fund lineup."
The announcement comes as tokenized funds, and money market funds in particular, have emerged as a notable use case in the tokenized asset market, with early issuances demonstrating market interest and value to the end investor. This collaboration is designed to bridge traditional and digital asset markets by bringing on-chain access to the brokerage accounts and advisor relationships through which many Americans already invest.
The firms expect to bring the first tokenized fund product to market in Q1 2027.
About Prometheum Inc.
Prometheum Inc. supports crypto assets including select crypto tokens, tokenized securities, and digitally-native securities through its broker-dealer network and market infrastructure for the issuance, distribution, trading, and custody of crypto assets. Its broker-dealer network includes Prometheum Capital (custody, clearing, and settlement), ProFinancial (issuance and distribution), Prometheum ATS (secondary market trading), and an SEC-registered digital transfer agent, Prometheum Coinery. For more information, please visit https://www.prometheum.com or contact business@procustody.com.
About Federated Hermes, Inc.
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with
Cautionary statements
Certain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, investor preferences and demand, asset flows and asset mix constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as “trend,” “forecast,” “project,” “predict,” “potential,” “approximate,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “projection,” “plan,” “assume,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “can,” “may,” and similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes’ control. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company to sustain product demand, the timing and level of product sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261013328602/en/
Media:
Jon Brubaker, head of communications
jbrubaker@prometheum.com
908-399-1254
Federated Hermes:
Johnny Weir, Head of Global Corporate Communications
Johnny.Weir@federatedhermes.com
+44 (0)20 7702 0888
Source: Prometheum Inc.