Federated Hermes is teaming up with Prometheum to bring a tokenized investment fund to traditional brokerage channels in the United States, with the first product from the collaboration slated to reach the market in the first quarter of 2027.

The partnership is designed to make brokers and financial advisers a primary route through which investors can gain access to blockchain-based securities — traditional investment products such as fund shares whose ownership is recorded as digital tokens on a blockchain — rather than relying solely on crypto-native platforms. Prometheum announced the strategic partnership in a post shared on X on October 13, 2026:

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 — 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: #Tokenization #cryptoassets #BrokerDealers

— Promethe (@PrometheumInc) October 13, 2026

The full post is available at Prometheum on X.

According to the firms, the collaboration is intended to give product issuers a blueprint for how tokenized funds can reach mainstream investors through the regulated intermediaries they already rely on.

Federated Hermes Plans Tokenized Fund Launch in Q1 2027

The first product of the collaboration is slated to reach the market in Q1 2027. Federated Hermes, which reported assets of $911.6 billion as of June 30, 2026, will supply expertise in investment management and tokenized products, while Prometheum will provide the regulatory infrastructure needed to distribute and service them. Prometheum will distribute, hold, clear and settle the products on regulated U.S. broker-dealer platforms. For a sense of scale, Federated Hermes' reported assets alone are more than 60 times the size of the entire existing on-chain market for tokenized U.S. Treasury and money market funds.

The structure is designed to take the same kinds of relationships that many U.S. investors already have with funds and brokers for traditional products and apply them to blockchain-based funds.

Broker-Dealers Can Access Tokenized Products Without Building Crypto Infrastructure

Issuing and distributing will be undertaken by Prometheum's ProFinancial subsidiary, which will support the distribution of the tokenized products, while Prometheum Capital will custody, clear, and settle them on the firm's regulated U.S. broker-dealer platforms.

Because any authorized broker-dealer that clears through Prometheum Capital can begin offering tokenized products to clients, participating firms can reach the asset class through a clearinghouse facilitated by Prometheum Capital rather than building their own digital-asset custody and settlement systems. According to the companies, that should help remove one of the largest hurdles to tokenizing assets: distribution.

Numerous tokenized funds already operate on blockchain networks, though many of these have been available only through specialist platforms rather than the standard brokerage accounts used by most investors.

$14B Tokenized Fund Market Gets Traditional Distribution Route

There is already more than $14 billion of tokenized U.S. Treasury and money market funds on-chain, according to Prometheum, yet almost none of it is currently accessible through traditional brokerage accounts. The partnership is designed to give that growing asset class a more direct path into regulated brokerage infrastructure.

Federated Hermes said blockchain-based access to traditional investment products is attracting demand from broker-dealers and registered investment advisers. Rather than replacing established financial intermediaries, the model keeps broker-dealers, custodians and clearing firms at the center of the transaction flow.

Prometheum Builds Full Stack for Tokenized Securities

Prometheum's larger overall structure features multiple regulated entities, each covering various stages of the securities lifecycle. ProFinancial is responsible for issuance and distribution, Prometheum Capital operates as a custody and clearing service, and Prometheum ATS has registered with the Securities and Exchange Commission as a digital transfer agent, the role responsible for maintaining an issuer's official record of who owns its securities.

Together, these entities provide the company with a playbook to follow for tokenized securities, from issuance to custody to eventual trading. "At Federated Hermes we are able to add to that the scale that we have, we are over 11,000 institutions and intermediaries globally," the asset manager said.

If the Q1 2027 launch proceeds as expected, the partnership could prove the capability of tokenized funds to successfully reach the investable networks that mainstream investors already use, beyond cryptocurrency exchange platforms. How many broker-dealers choose to clear through Prometheum Capital, and whether other product issuers follow the blueprint the collaboration is meant to establish, will provide the first indications of whether that route extends beyond a single fund.