Federated Hermes, Inc. (NYSE: FHI), the asset manager with $911.6 billion under management, said on September 1 that it has formed a strategic alliance with Singapore-based Conduit Digital Holdings to support the launch of a regulated tokenized money market fund distribution structure in Asia-Pacific. The announcement marks Federated Hermes’ first digital-assets initiative in the region and positions its flagship U.S. Prime Fund as the anchor product for a tokenized multicurrency offering.
How the Tokenized Structure Works
Under the arrangement, a Conduit-managed investment fund will invest in the Federated Hermes Short-Term U.S. Prime Fund, giving holders of the Conduit fund’s shares tokenized exposure to the underlying portfolio. The Prime Fund is an actively managed, UCITS-authorized money market fund that invests in high-quality, U.S. dollar-denominated short-term debt such as commercial paper and certificates of deposit. Federated Hermes manages $676.9 billion in money market assets across a business with more than 50 years of money market innovation.
Federated Hermes’ Wider Tokenization Push
The Conduit alliance extends a string of recent digital-asset moves at Federated Hermes, including tokenized access to three UCITS money market funds through the FCA-regulated Archax exchange and participation in an industry-wide mirrored-tokenization initiative. The firm also cites its first GENIUS Act-aligned money market fund. Kevin Barr, appointed Director of Digital Assets Product and Platform Strategy in May 2026, leads the firm’s approach to regulated digital assets and tokenization.
APAC Expansion and Institutional Demand
Conduit Digital Holdings brings Monetary Authority of Singapore-regulated end-to-end tokenization infrastructure and a regional distribution network to the partnership. “Tokenized products represent a new and evolving way to engage with our clients, combining our investment expertise with Conduit’s MAS-regulated end-to-end tokenization capabilities and regional distribution network,” said Jim Roland, Federated Hermes’ Head of Business Development for Asia Pacific and Australia. Conduit framed the alliance as more than settlement, pointing to collateral, multicurrency management, and AI agentic treasury systems as the utilities it wants to unlock. “We are committed to unlocking the full utility of these tokens,” said Richard Schroder, Co-Founder and CEO of Conduit Digital Holdings. The move builds on a wider wave of institutional tokenized-fund launches, including Goldman Sachs and BNY Mellon’s money market fund tokenization and BounceBit’s launch of Franklin Templeton’s tokenized money market fund.
