Federated Hermes, an asset manager overseeing $911.6 billion in assets under management, has partnered with Prometheum to develop a tokenized fund for distribution through broker-dealers in the United States. The first product from this collaboration is scheduled to launch in the first quarter of 2027.
This distribution is not geared toward independent crypto exchange apps, but instead channels assets directly into regular stock brokerage accounts.
Why Go Through Traditional Brokerage Channels
Rather than using exclusive crypto platforms, the two parties chose established brokerage accounts and existing financial advisor relationships. This setup is designed so capital market clients do not need to create self-custodial digital wallets or leave the conventional securities ecosystem.
Kevin Barr, head of digital assets at Federated Hermes, described the tokenized fund as a logical next step for their broker-dealer and registered investment advisor (RIA) clients. Client demand for blockchain-based instruments is now being met directly through the brokerage channels they already use.
Prometheum Co-CEO Aaron Kaplan hailed the partnership as an industry “blueprint” for issuing and distributing digital securities through mainstream securities firms. The distribution foundation was established on May 25, 2026, when Prometheum launched dedicated brokerage infrastructure for broker-dealers and RIAs.
Dividing Roles Under Regulatory Oversight
Federated Hermes and Prometheum have divided responsibilities based on each entity’s core functions. Federated Hermes provides investment management expertise, while Prometheum operates the securities infrastructure under strict regulatory oversight.
Prometheum holds SEC-registered broker-dealer status and is a FINRA member. Through Prometheum Capital, the firm handles custody, clearing, and client trade settlement. Product distribution is supported by its subsidiary ProFinancial, while secondary market trading is facilitated via Prometheum ATS and recordkeeping by SEC-registered transfer agent Prometheum Coinery.
An Adoption Test for Financial Advisors
Distributed ledger integration is now shifting directly into conventional capital markets. Rather than steering retail investors toward new crypto exchanges, asset managers are choosing to bring tokenized products straight into established stock portfolios.
For US investors, the launch in the first quarter of 2027 will serve as a real test. The efficiency gains of blockchain technology will be judged not by technical claims, but by how seamlessly transactions happen in the brokerage accounts they check every day.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
