Federated Hermes joins Wall Street's tokenization push with plans for first onchain fund shares
Federated Hermes said it plans to issue tokenized fund share classes in early 2027, and it linked the rollout to brokerage distribution with Prometheum involved. The latest coverage also put the first product in Q1 2027 and said Prometheum will handle issuance, distribution, custody, clearing, and settlement through its broker-dealer network.
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Investors and brokerage customers will notice the plan as a change in how fund shares could be offered inside traditional brokerage accounts, rather than through a separate channel. The first product is still not available today, and the timing given for it is Q1 2027.
In practice, Prometheum is set to handle issuance, distribution, custody, clearing, and settlement for the tokenized fund shares through its SEC-registered, FINRA-member broker-dealer network. What stays the same is that Federated Hermes remains the investment manager behind the funds, while the brokerage-side functions are assigned to Prometheum.
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