Key Takeaways:
- Federated Hermes and Prometheum are set to launch the first tokenized fund product in Q1 2027.
- Prometheum will distribute, hold, clear and settle on the regulated U.S. broker-dealer platforms.
- The partnership aims to fund the money market fund and the tokenized Treasury worth over USD 14 billion already onchain.
Federated Hermes is teaming up with Prometheum to get a tokenized investment fund onto the traditional brokerage channels in the U.S. The firms would like brokers and financial advisers to be one way investors can get into blockchain-based securities instead of just crypto-native platforms.
Today we announced a strategic partnership with Federated Hermes, Inc. to distribute tokenized securities through traditional broker-dealer channels.
We believe this will provide product issuers the blueprint for how tokenized funds will reach mainstream investors through the regulated intermediaries they already rely on.
Over $14B in tokenized U.S. Treasury and money market funds alone are on-chain, per https://t.co/9jzdtWoVDT — but almost none of it is accessible through traditional brokerage accounts. ProFinancial will support the distribution of the tokenized products, and Prometheum Capital will custody, clear, and settle these products. Any authorized broker-dealer that clears through us can begin to offer tokenized products to clients without building its own crypto asset infrastructure.
Read the full announcement here: https://t.co/SAHHIVEjQO
#Tokenization #cryptoassets #BrokerDealers
— Prometheum (@PrometheumInc) October 13, 2026
Federated Hermes Plans Tokenized Fund Launch in Q1 2027
The first product of the collaboration is slated for the market in Q1 of 2027.
With assets of $911.6 billion as of June 30, 2026, Federated Hermes will supply expertise in investment management and tokenized products.
Prometheum will provide regulatory infrastructure to distribute and service them. The structure is designed to take the same kinds of fund/broker relationships that many U.S. investors have for traditional funds and apply them to blockchain-based funds.
Read More: SEC Clears Path for Tokenized Stocks With 5-Year Onchain Trading Exemption
Broker-Dealers Can Access Tokenized Products Without Building Crypto Infrastructure
Issuing and distributing will be undertaken by Prometheum’s ProFinancial subsidiary while handling the custody, clearing and settlement will be undertaken by Prometheum Capital.
Without a need for a digital-asset custody and settlement system, such broker-dealers could then offer tokenized products to clients through a clearinghouse facilitated by Prometheum Capital.
That should help remove one of the largest hurdles to tokenizing assets: distribution.
There are numerous tokenized funds on blockchain networks, though many of these were only available through specialist platforms and not the usual brokerage accounts.
$14B Tokenized Fund Market Gets Traditional Distribution Route
There is already over $14 billion of tokenized U.S. Treasury and money market funds onchain, says Prometheum. The partnership is designed to give that growing asset class a more direct path into regulated brokerage infrastructure.
Blockchain-based access to traditional investments products is attracting demand from broker-dealers and registered investment advisers, said Federated Hermes.
Instead of replacing established financial intermediaries, the model keeps broker-dealers, custodians and clearing firms at the center of the transaction flow.
Read More: OKX Eyes 63 U.S. Stocks in Major Tokenized Trading Expansion
Prometheum Builds Full Stack for Tokenized Securities
Prometheum’s larger overall structure features multiple regulated entities with various stages of the securities lifecycle.
ProFinancial is responsible for issuance and distribution, Prometheum Capital is a custody and clearing service and Prometheum ATS has registered with the Securities and Exchange Commission as a digital transfer agent.
That entity provides the company with a playbook to follow for tokenized securities from issuance to custody to eventual trade. At Federated Hermes we are able to add to that the scale that we have, we are over 11,000 institutions and intermediaries globally.
If the launch of Q1 2027 is as expected, the partnership could prove the capability of tokenized funds to successfully get onto investor investable networks beyond cryptocurrency exchange platforms.
