Prometheum Inc., a market infrastructure provider for crypto assets, and Federated Hermes, Inc., a global leader in active investment management, announced a strategic partnership to expand the reach of tokenized securities products through Prometheum’s SEC-registered, FINRA member broker-dealer market infrastructure.

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.

Source: Prometheum