Federated Hermes, Inc. (NYSE: FHI), which manages $911.6 billion in assets, 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 the Asia-Pacific region.
Announced on September 1, the partnership represents Federated Hermes’ first digital-assets initiative in Asia-Pacific. Its flagship Federated Hermes Short-Term U.S. Prime Fund will serve as the anchor product for a tokenized multicurrency investment offering.
How the Tokenized Money Market Fund Structure Works
Under the agreement, a Conduit-managed investment fund will invest in the Federated Hermes Short-Term U.S. Prime Fund. Investors in the Conduit fund will therefore receive tokenized exposure to the underlying portfolio through their fund shares.
The Federated Hermes Short-Term U.S. Prime Fund is an actively managed, UCITS-authorized money market fund. It invests in high-quality, U.S. dollar-denominated short-term debt, including commercial paper and certificates of deposit.
Federated Hermes manages $676.9 billion in money market assets and has more than 50 years of experience in money market innovation.
Federated Hermes Expands Its Tokenization Strategy
The Conduit partnership adds to Federated Hermes’ growing digital-assets and fund-tokenization activity. The asset manager has also enabled tokenized access to three UCITS money market funds through the FCA-regulated Archax exchange and joined an industry-wide mirrored-tokenization initiative.
The firm also points to its first GENIUS Act-aligned money market fund. Kevin Barr, who was appointed Director of Digital Assets Product and Platform Strategy in May 2026, leads Federated Hermes’ strategy for regulated digital assets and tokenization.
Asia-Pacific Institutional Demand for Tokenized Funds
Conduit Digital Holdings contributes Monetary Authority of Singapore-regulated, end-to-end tokenization infrastructure, as well as a regional distribution network.
“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 said the alliance is intended to support more than fund settlement. The company identified collateral management, multicurrency management and AI agentic treasury systems as potential applications for the tokenized products.
“We are committed to unlocking the full utility of these tokens,” said Richard Schroder, Co-Founder and CEO of Conduit Digital Holdings.
The partnership comes amid broader institutional interest in tokenized investment funds. Recent examples include the tokenization of a money market fund by Goldman Sachs and BNY Mellon, as well as BounceBit’s launch of Franklin Templeton’s tokenized money market fund.
