Federated Hermes Targets Stablecoin Reserves with New Treasury Fund

The Federated Hermes Money Market Management Digital Treasury Fund focuses on U.S. dollar cash, Treasury securities with maturities under 93 days, and overnight repurchase agreements. By operating under Rule 2a-7 of the Investment Company Act of 1940, the firm aims to provide a compliant vehicle for issuers navigating the federal framework established in July 2025. While the current product does not utilize blockchain technology, the company noted that intermediaries may record ownership via distributed ledgers and confirmed they are exploring future integration of such systems.

Susan Hill and John Wyda have been tapped to manage the portfolio, drawing on the firm’s $684.7 billion in existing money market assets as of March 2026. This launch arrives as FinCEN and OFAC finalize rules that force issuers to adopt institutional-grade anti-money laundering and sanctions compliance. Paul A. Uhlman, president of the Federated Advisory Companies, described the move as a strategic expansion of their liquidity management expertise into the growing market for tokenized and reserve-focused financial products.