Federated Hermes has rolled out two tokenised UCITS Money Market Funds (MMFs) for professional investors through the Archax platform.
Access to the Federated Hermes Short-Term Sterling Prime fund and the Federated Hermes Short-Term US Prime fund is through beneficial ownership tokens issued by Archax, the first FCA-regulated digital securities exchange, broker and custodian.
The tokens represent investors’ holdings in the underlying UCITS funds, and are available on multiple blockchains, including Ethereum, Polygon, Algorand, Hedera, Etherlink, XRPL (Ripple), Arbitrum, Solana, Stellar and XDC.
Deborah Cunningham, CIO for global liquidity markets at Federated Hermes, said: “We are excited to bring tokenised money market funds as an alternative to investors already holding assets on blockchains.
“This provides the potential to access the stability and yield characteristics typically associated with money market funds, without needing to move assets off-chain.
“Tokenised products represent a new and evolving way to engage with clients, combining our investment expertise with Archax’s digital infrastructure to meet the needs of those active in digital finance.”
Graham Rodford, CEO and co-founder of Archax, added: “Unlocking new demand for TradFi products through the use of blockchain and tokenisation is a key strand of the Archax strategy around real-world assets.
“This partnership does just that, but also unlocks innovative new use-cases for money market funds once tokenised, such as the ability to use them as collateral and transfer value between parties, as a type of yield-bearing, digital currency.”
He added: “Working with Federated Hermes is a clear demonstration of the effectiveness of combining Archax’s regulated and institutional approach to digital assets with an established, leading player from the traditional world.”
