Federated Hermes launches Digital Treasury Fund Reserve Shares
12 June 2026 US
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Federated Hermes has launched Federated Hermes Money Market Management Digital Treasury Fund Reserve Shares.
According to the firm, the fund seeks to provide current income consistent with stability of principal, by investing in a portfolio of US dollar cash and US Treasury investments that mature within 93 days, and overnight repo fully collateralised by US Treasury securities.
In pursuing its investment objective and implementing its investment strategies, the fund intends to comply with Rule 2a-7 under the Investment Company Act of 1940.
The fund is Federated Hermes' first product designed to satisfy the requirements for eligible reserve assets that payment-stablecoin issuers are required to maintain under the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act.
The act provides a regulatory framework for stablecoins, a type of digital asset, to be backed by high-quality liquid assets on a one-to-one basis.
While the fund itself does not employ blockchain technology with respect to the reserve shares, fund shares are expected to be used primarily by participants in the broader blockchain ecosystem.
Reserve shares of the fund may be purchased and held by individuals, payment-stablecoin issuers, and institutional investors directly or through intermediaries, including intermediaries that use blockchain technology to maintain a record of share ownership for their customers.
In the future, the fund may seek to employ blockchain technology to maintain a record of share ownership with respect to the reserve shares or additional share classes.
Drawing on that experience, the fund is managed by Susan Hill, CFA, senior portfolio manager, and head of government liquidity group, and John Wyda, CFA, senior portfolio manager, and senior investment analyst.
The firm manages US$684.7 billion in money market assets as of 31 March 2026.
Paul A. Uhlman, president and CEO of the Federated Advisory Companies, states: “Liquidity management is a core business of Federated Hermes and we offer one of the largest menus of targeted solutions.
“Federated Hermes is proud to advance strategic initiatives that bring together the strength of money market investments and our management expertise.
“As the industry continues to explore the digital space and tokenised money market offerings, we continue to vet opportunities that employ the efficiency and transparency of blockchain technology.”
According to the firm, the fund seeks to provide current income consistent with stability of principal, by investing in a portfolio of US dollar cash and US Treasury investments that mature within 93 days, and overnight repo fully collateralised by US Treasury securities.
In pursuing its investment objective and implementing its investment strategies, the fund intends to comply with Rule 2a-7 under the Investment Company Act of 1940.
The fund is Federated Hermes' first product designed to satisfy the requirements for eligible reserve assets that payment-stablecoin issuers are required to maintain under the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act.
The act provides a regulatory framework for stablecoins, a type of digital asset, to be backed by high-quality liquid assets on a one-to-one basis.
While the fund itself does not employ blockchain technology with respect to the reserve shares, fund shares are expected to be used primarily by participants in the broader blockchain ecosystem.
Reserve shares of the fund may be purchased and held by individuals, payment-stablecoin issuers, and institutional investors directly or through intermediaries, including intermediaries that use blockchain technology to maintain a record of share ownership for their customers.
In the future, the fund may seek to employ blockchain technology to maintain a record of share ownership with respect to the reserve shares or additional share classes.
Drawing on that experience, the fund is managed by Susan Hill, CFA, senior portfolio manager, and head of government liquidity group, and John Wyda, CFA, senior portfolio manager, and senior investment analyst.
The firm manages US$684.7 billion in money market assets as of 31 March 2026.
Paul A. Uhlman, president and CEO of the Federated Advisory Companies, states: “Liquidity management is a core business of Federated Hermes and we offer one of the largest menus of targeted solutions.
“Federated Hermes is proud to advance strategic initiatives that bring together the strength of money market investments and our management expertise.
“As the industry continues to explore the digital space and tokenised money market offerings, we continue to vet opportunities that employ the efficiency and transparency of blockchain technology.”
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