Tokenized money market funds and U.S. Treasuries have spearheaded Wall Street’s tokenization efforts, allowing companies and institutional investors to earn yield on cash reserves while moving assets around the clock. The tokens can also serve as collateral for loans or trades, helping firms put their cash to work without selling their holdings.
“You can have instantaneous movement of those funds,” Barr said. “You can have programmability of those funds in a way that is perhaps more difficult or operationally inefficient with traditional infrastructure.”
Brokerage accounts access
A key part of the Prometheum partnership is making those products available through familiar investment channels.
Prometheum’s SEC-registered broker-dealer subsidiaries will provide custody, clearing and settlement services, while its correspondent clearing platform will allow other broker-dealers to offer Federated Hermes’ tokenized products to their…
