Federated Hermes joins Wall Street's tokenization push with plans for first onchain fund shares

TL;DR: Federated Hermes (FHI) announced plans to launch the first tokenized mutual fund shares on a public blockchain by 2027, marking a major step in Wall Street’s move toward on‑chain assets.

The Details

• The asset manager will work with a leading tokenization platform to issue digital fund shares on Ethereum (or a layer‑2 solution).
• Shares will be represented as security tokens, enabling instant settlement, fractional ownership, and 24/7 trading.
• The rollout targets a 2027 pilot, subject to SEC approval and compliance with existing securities regulations.
• The move follows similar initiatives by firms such as BlackRock and Goldman Sachs, signaling growing confidence in blockchain‑based securities.

Watch For

• SEC rulings or guidance on tokenized securities that could accelerate or delay the launch.
• Partnerships with blockchain providers and custodians that may affect the technical architecture.
• Market reaction from other asset managers and institutional investors considering tokenization.