Federated Hermes Launches On-Chain Fund Share Program

Asset management company Federated Hermes plans to launch its first on-chain fund shares early next year, participating in the trend of traditional assets moving on-chain. The company is collaborating with digital securities infrastructure firm Prometheum to introduce blockchain-based fund shares into traditional brokerage accounts and financial advisor channels. The specific types of tokenized funds and the blockchain network to be used have not yet been disclosed, but Kevin Barr, head of digital asset products, indicated that money market funds may be among the first tokenized products. This move positions Federated Hermes alongside institutions like BlackRock, Franklin Templeton, and JPMorgan Chase in promoting the trend of asset tokenization, with supporters arguing that blockchain can enhance the efficiency of asset issuance, transfer, and settlement, as well as enable more flexible financial product portfolios. Unlike previous tokenized products issued through third-party platforms, Federated Hermes plans to issue on-chain fund shares independently, allowing for more direct involvement in the tokenization process of fund products.

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