Federated Hermes and Conduit Digital Holdings Partner to Launch Tokenized Money Market Fund in APAC
Federated Hermes and Conduit Digital Holdings have announced a strategic alliance aimed at launching a regulated tokenized money market fund in the Asia Pacific region. This move underscores Federated Hermes' commitment to digital asset innovation and its expansion in the region.
Federated Hermes, a global leader in active investment management with over 50 years of experience and $676.9 billion in money market assets under management as of June 30, 2026, will partner with Conduit Digital Holdings, a Singapore-based firm part of the Conduit Group, to tokenize Federated Hermes' Short-Term U.S. Prime Fund. The Conduit-managed fund will be tokenized and offered to institutional and wholesale investors in the APAC region.
Kevin Barr, Director of Digital Assets Product and Platform Strategy at Federated Hermes, expressed enthusiasm for the initiative. "This alliance with Conduit Digital Holdings represents an exciting step in our commitment to evolving our digital assets product and strategy," Barr said. "We are excited to support innovative cash management solutions that better serve client needs, building on our legacy of innovation in the money market fund space."
The partnership is part of Federated Hermes' broader efforts to integrate digital assets into its product offerings. The company has recently entered into several other digital asset initiatives, including an alliance with UK-based Archax, a digital securities exchange, to provide tokenized access to three UCITS money market funds. Federated Hermes is also a participant in an industry-wide, regulated initiative using mirrored tokenization to enhance transferability, collateral utility, and real-time tracking of fund shares. Additionally, the company launched its first GENIUS Act-aligned money market fund in the US, designed to support stablecoin reserve use cases, with potential for future tokenization.
Jim Roland, Head of Business Development, Asia Pacific and Australia at Federated Hermes, highlighted the strategic importance of the APAC market. "Tokenized products represent a new and evolving way to engage with our clients in the APAC market," Roland said. "Our customers here are leading the worldwide adoption of tokenization, making this a highly receptive market for our latest digital assets initiative."
Conduit Digital Holdings, co-founded by Richard Schroder, is committed to unlocking the full utility of these tokens. "We are delighted to work with Federated Hermes to have their U.S. Prime Fund as the anchor product of our CDH tokenized multicurrency money market offering," Schroder said. "This collaboration marks a defining moment for the Conduit Group, as we bring institutional-grade products onchain through regulated, MAS-licensed infrastructure."
This strategic alliance represents Federated Hermes' first digital assets initiative in the APAC region, underscoring its continued commitment to the growing digital asset ecosystem. The launch is seen as a significant step in building a larger digital asset presence for the company, leveraging its core strengths in liquidity management.
"We are proud to combine our fiduciary oversight with the strength of an active manager with over 50 years of money market leadership," added Chris O'Meara, CEO of Conduit Asset Management and Chairman of the Conduit Group. "This launch is only the first step in building the institutional access layer for tokenized real-world assets across the region."
The launch of the tokenized fund is subject to regulatory approval and is not intended as a solicitation or an offer to buy or sell any securities in the US. Shares of the fund have not been and will not be registered under the US Securities Act of 1933, as amended, or the securities laws of any of the states of the US.