Federated Hermes, Inc. (NYSE: FHI) has entered a strategic alliance with Singapore-based Conduit Digital Holdings Pte Ltd to support the launch of a regulated tokenized distribution structure in the Asia-Pacific region.

Under the arrangement, a Conduit-managed investment fund will invest in the Federated Hermes Short-Term U.S. Prime Fund. Shares of the Conduit fund will then be tokenized and offered to institutional and wholesale investors across APAC. The announcement marks Federated Hermes' first digital assets initiative in the region.

The Federated Hermes Short-Term U.S. Prime Fund is a UCITS-authorized money market fund that invests primarily in U.S. dollar-denominated short-term debt instruments, including commercial paper and certificates of deposit. Federated Hermes reported $676.9 billion in money market assets under management as of June 30, 2026.

The alliance with Conduit follows several other digital asset initiatives by Federated Hermes, including a partnership with UK-based Archax, an FCA-regulated digital securities exchange, to provide tokenized access to three UCITS money market funds, and the launch of its first GENIUS Act-aligned money market fund in the U.S. Kevin Barr was appointed Director of Digital Assets Product and Platform Strategy at the firm in May 2026.

Conduit Digital Holdings is regulated by the Monetary Authority of Singapore (MAS). The firm is part of Conduit Group, a Singapore-based investment and financial services firm.

Federated Hermes also announced earlier this year plans to open a Hong Kong office, adding to existing Asia-Pacific offices in Singapore, Tokyo, and Sydney. The Pittsburgh-headquartered firm reported total assets under management of $911.6 billion as of June 30, 2026, according to a press release statement.