Federated Hermes to Launch First Onchain Fund Shares Amid Evolving Digital Landscape

Federated Hermes, a prominent money market manager with approximately $912 billion in assets under management, is set to introduce its first fund shares that will operate directly onchain. This initiative is still in the developmental phase, contingent on the evolution of digital transfer agency models.

The core strategy revolves around money market funds, with Federated Hermes managing $676.9 billion in this category as of June 30, 2026. The proposed onchain share class would allow shares to be recorded and transferred on a blockchain, moving away from traditional ledger systems.

Kevin Barr, appointed as Director of Digital Assets Product and Platform Strategy in May 2026, is leading this effort. The firm has already established partnerships, including one with UK-based Archax in October 2025, enabling tokenized access to three UCITS money market funds through beneficial ownership tokens across multiple blockchains.

On June 9, 2026, Federated Hermes launched its Digital Treasury Fund, designated with the ticker OFFXX, which is aligned with the GENIUS Act and anticipates the addition of tokenized share classes as regulatory frameworks mature. Furthermore, a strategic partnership with Conduit Digital Holdings was announced on September 1, 2026, aimed at developing a regulated tokenized fund distribution system in the Asia-Pacific region.

This move towards tokenized share classes could provide institutional investors with the ability to manage money market exposure alongside other onchain assets. However, the timeline for a fully operational onchain share class remains uncertain, dependent on the progress of digital transfer agency models and regulatory developments.

As the landscape for tokenized funds evolves, OFFXX is positioned as a potential testing ground, while the Conduit partnership may reveal the demand for tokenized access to U.S. money market products in international markets.