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Federated Hermes to Launch First Onchain Fund Shares
Federated Hermes, a prominent asset manager with approximately $912 billion in total assets under management, is planning to issue its first fund shares that will operate directly on a blockchain. This initiative marks a significant step towards fully tokenized share classes, although the timeline for implementation remains uncertain as it depends on the evolution of digital transfer agency models.
The company currently manages $676.9 billion in money market assets as of June 30, 2026. The proposed onchain share class would allow fund shares to be recorded and transferred on a blockchain, moving away from traditional ledgers. Kevin Barr, appointed in May 2026 as Director of Digital Assets Product and Platform Strategy, is leading this effort.
In recent developments, Federated Hermes has formed partnerships to enhance its tokenization strategy. In October 2025, it collaborated with UK-based Archax to provide tokenized access to three UCITS money market funds. Additionally, on June 9, 2026, the firm launched its Digital Treasury Fund, OFFXX, which is designed to potentially incorporate tokenized share classes as regulatory frameworks evolve. A strategic partnership with Conduit Digital Holdings was announced on September 1, 2026, aimed at creating a regulated tokenized fund distribution system in the Asia-Pacific region, allowing institutional investors to access Federated Hermes’ Short-Term U.S. Prime Fund through tokenization.
The introduction of tokenized share classes could offer institutional investors a seamless way to manage money market exposure alongside other onchain assets. However, the realization of fully onchain share classes is contingent upon the maturation of digital transfer agency models and regulatory frameworks, which may affect the timeline for this initiative.
Source: KLEA News