Federated Hermes has partnered with Singapore-based Conduit Digital Holdings to establish a tokenized distribution structure for the Asia-Pacific market. Under the strategic alliance, a Conduit-managed fund will invest in the Federated Hermes Short-Term U.S. Prime Fund, with shares of the fund then tokenized and made accessible to APAC-based institutional and wholesale investors.
Key Overview
- Federated Hermes and Conduit Digital Holdings have launched a tokenized multicurrency money market offering for the APAC market.
- The Federated Hermes Short-Term U.S. Prime Fund will serve as the anchor product.
- A Conduit-managed fund will invest in the Federated Hermes fund before its shares are tokenized.
- The tokenized offering will be accessible to APAC-based institutional and wholesale investors.
- The initiative represents Federated Hermes’ first digital assets initiative in APAC.
- Conduit provides MAS-regulated end-to-end tokenization capabilities and regional distribution infrastructure.
- Federated Hermes had US$676.9 billion in money market assets under management as of June 30, 2026.
- The partnership follows other Federated Hermes digital-asset initiatives involving tokenized UCITS money market funds.
Federated Hermes Launches Tokenized Money Market Offering
Active asset manager Federated Hermes has partnered with Singapore-based Conduit Digital Holdings to establish a tokenized distribution structure for the Asia-Pacific market.
The strategic alliance uses the Federated Hermes Short-Term U.S. Prime Fund as the anchor product for a tokenized multicurrency money market offering.
Under the terms of the agreement, a Conduit-managed fund will invest in the Federated Hermes Short-Term U.S. Prime Fund. Shares of the fund, which provides exposure to the underlying Federated Hermes fund, will then be tokenized and made accessible to APAC-based institutional and wholesale investors.
The announcement represents Federated Hermes’ first digital assets initiative in APAC, as the asset manager continues to expand its presence in the region.
Tokenized Access to U.S. Prime Fund
The Federated Hermes Short-Term U.S. Prime Fund is an actively managed, UCITS-authorized money market fund that aims to provide current income while maintaining daily liquidity and a stable principal value.
The fund invests primarily in high-quality, U.S. dollar-denominated short-term debt instruments, including commercial paper and certificates of deposit.
Through the new structure, investors will receive tokenized exposure to the fund through the Conduit-managed offering.
Federated Hermes said the alliance with Conduit builds on its broader approach to regulated digital assets, tokenization and next-generation investment infrastructure.
Conduit Provides Tokenization Infrastructure
The partnership taps Conduit Digital Holdings’ MAS-regulated tokenization infrastructure and regional reach.
The tokenized offering is designed to provide institutional and wholesale investors in APAC with access to the underlying money market fund through a digital structure.
Richard Schroder, Co-Founder and CEO of Conduit Digital Holdings, said the Federated Hermes U.S. Prime Fund would serve as the anchor product of the company’s tokenized multicurrency money market offering.
“We are delighted to work with Federated Hermes to have their U.S. Prime Fund as the anchor product of the CDH tokenized multicurrency money market offering,” Schroder said.
He added that Conduit is seeking to unlock the utility of the tokens beyond simple settlement, including their use as collateral, multicurrency management, and integration into AI agentic treasury management systems.
Federated Hermes Expands Digital Asset Strategy
Federated Hermes has been developing its digital assets strategy under Kevin Barr, Director, Digital Assets Product and Platform Strategy, who was appointed to the role in May 2026.
Barr said the company sees tokenized investment structures as an opportunity to combine its money market expertise with on-chain distribution.
“Vaults represent a compelling evolution in investment management, and we see a significant opportunity to bring our legacy of trust and fiduciary responsibility to this emerging space,” Barr said.
“We continue to explore on-chain distribution opportunities to enhance flexibility and accessibility, while preserving access to the stability and yield characteristics typically associated with money market funds.”
The latest initiative follows a series of Federated Hermes money market and digital asset developments.
These include an alliance with UK-based Archax, an FCA-regulated digital securities exchange, to provide tokenized access to three UCITS money market funds.
The asset manager has also participated in an industry-wide regulated initiative using mirrored tokenization to enhance transferability, collateral utility and real-time tracking of fund shares.
Federated Hermes also launched its first GENIUS Act-aligned money market fund in the U.S ., designed to support stablecoin reserve use cases, with potential for future tokenization and tokenized share classes.
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Federated Hermes’ APAC Expansion
The partnership with Conduit comes as Federated Hermes expands its Asia-Pacific footprint.
The asset manager has existing offices in Singapore, Tokyo and Sydney and announced plans to open a Hong Kong office as part of a long-term growth strategy.
The expansion is aimed at deepening relationships with private banks, family offices, wealth intermediaries and institutional investors across the region.
Jim Roland, Head of Business Development, Asia Pacific and Australia at Federated Hermes, said tokenized products represent an evolving way of engaging with clients.
“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,” Roland said.
He added that customers in the APAC market are leading worldwide adoption of tokenization, making the region strategically important for the latest digital assets initiative.
Federated Hermes Brings Money Market Experience
Federated Hermes has over 50 years of money market leadership and had $676.9 billion in money market assets under management as of June 30, 2026.
The new partnership allows the asset manager to bring its existing money market capabilities into a tokenized distribution structure for APAC investors.
Chris O’Meara, CEO of Conduit Asset Management and Chairman of the Conduit Group, said the collaboration represents a defining moment for the group’s strategy in Asia-Pacific.
As investment manager to the fund, Conduit Asset Management will combine its fiduciary oversight with Federated Hermes’ money market expertise.
Outlook
The Federated Hermes and Conduit partnership expands tokenized money market fund access in APAC by combining the Federated Hermes Short-Term U.S. Prime Fund with Conduit’s MAS-regulated tokenization infrastructure.
The initiative represents Federated Hermes’ first digital assets initiative in APAC and follows its earlier work involving tokenized UCITS money market funds and other regulated digital asset initiatives. The offering is designed for institutional and wholesale investors, while Conduit aims to expand the utility of tokenized assets into collateral, multicurrency management and AI agentic treasury management systems.
FAQs
1. What did Federated Hermes and Conduit launch in APAC?
They launched a tokenized multicurrency money market offering providing tokenized exposure to the Federated Hermes Short-Term U.S. Prime Fund.
2. Which fund serves as the anchor product for the tokenized offering?
The Federated Hermes Short-Term U.S. Prime Fund serves as the anchor product. A Conduit-managed fund will invest in it before the shares are tokenized.
3. Who can access the tokenized money market offering?
The tokenized shares will be accessible to APAC-based institutional and wholesale investors.
4. What makes the initiative significant for Federated Hermes?
It represents Federated Hermes’ first digital assets initiative in APAC, building on its previous tokenization and digital-asset initiatives involving money market funds.
Sources: KuCoin, France 24, Funds Global Asia, PR Newswire
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