Federated Hermes Launches Digital Treasury Fund for Stablecoins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2026
0mins
Source: PRnewswire
- Fund Launch: Federated Hermes has introduced its first digital treasury fund, the Federated Hermes Money Market Management Digital Treasury Fund, which aims to provide stable income by investing in US Treasury securities and cash that mature within 93 days, meeting the reserve asset requirements for payment stablecoin issuers.
- Compliance and Innovation: The fund complies with Rule 2a-7 under the Investment Company Act of 1940, ensuring high liquidity and safety in its portfolio while providing a compliant investment solution for the stablecoin market, reflecting the company's strategic foresight in the digital asset space.
- Management Expertise: Managed by seasoned portfolio managers Susan Hill and John Wyda, the fund leverages Federated Hermes' over 50 years of innovation in money markets, expected to attract both individual and institutional investors, further solidifying its market leadership.
- Market Potential and Risks: While the fund aims to maintain an investment value of $1.00 per share, its investment restrictions may result in lower yields compared to other money market funds, prompting investors to carefully assess risks and returns to ensure alignment with their investment objectives.
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Analyst Views on FHI
Wall Street analysts forecast FHI stock price to fall
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 58.750
Low
51.00
Averages
53.75
High
56.00
Current: 58.750
Low
51.00
Averages
53.75
High
56.00
About FHI
Federated Hermes, Inc. is an investment management company. The Company operates through a single segment, being the investment management business. It sponsors, markets, and provides investment-related services to various investment products, including sponsored investment companies and other funds (Federated Hermes Funds); and Separate Accounts, which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. In addition, it markets and provides stewardship and real estate development services to various domestic and international companies. The Company provides investment advisory services to approximately 176 Federated Hermes Funds. It markets these funds to institutional customers and banks, broker/dealers and other financial intermediaries who use them to meet the needs of customers and/or clients, including, among others, retail investors, corporations, and retirement plans.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of May 31, 2026, enhancing investor transparency and trust in its offerings.
- Asset Management Scale: As of March 31, 2026, Federated Hermes manages $907.1 billion in assets, underscoring its leadership in global active investment management and attracting increased attention from institutional investors.
- Diverse Client Base: The firm provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, demonstrating its robust capabilities in diversified investment strategies.
- Global Employee Network: With more than 2,000 employees across various offices worldwide, Federated Hermes ensures efficient service and support for its clients, further solidifying its market position.
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- New ETF Launch: Federated Hermes has introduced the International Leaders ETF (CBOE: FHIL), designed to provide investors with access to international equities through well-known global companies, which is expected to attract clients seeking diversified investment options.
- Investment Strategy: The ETF primarily invests in high-quality developed market stocks, aiming to achieve long-term capital growth by identifying undervalued companies through deep fundamental analysis, which could enhance investor returns over time.
- Strong Management Team: Managed by Richard Winkowski, Jr. and Dariusz Czoch, who bring over 25 years of experience in international equity strategies, this expertise is likely to bolster investor confidence in the product.
- Market Demand Response: By launching ETF versions of its popular strategies, Federated Hermes is responding to investor demand for international equity investments, which is expected to enhance its competitiveness in the ETF market.
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- New ETF Launch: On June 17, 2026, Federated Hermes introduced the International Leaders ETF (CBOE: FHIL), aimed at providing investors with access to international equities through well-known global companies, which is expected to attract clients seeking diversified investment options.
- Investment Strategy: The ETF primarily invests in high-quality developed market stocks with the objective of achieving long-term capital growth, typically holding 60 to 85 undervalued companies, reflecting its robust fundamental analysis capabilities.
- Management Team Expertise: Managed by Richard Winkowski, Jr. and Dariusz Czoch, the ETF leverages their experience from managing the $1.5 billion International Leaders Fund, showcasing over 25 years of expertise in international equity strategies.
- Market Demand Response: The launch of this ETF responds to investor demand for international equity investments, combining the tax efficiency and liquidity of ETFs, which is expected to enhance Federated Hermes' competitiveness in the global investment management market.
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- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of May 31, 2026, enhancing transparency and client trust by making this information readily available on their website.
- Asset Management Scale: As of March 31, 2026, Federated Hermes manages $907.1 billion in assets, underscoring its leadership position in the global active investment management sector and further solidifying its market share.
- Diverse Client Base: The company provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, demonstrating its strong capability in serving a diversified clientele.
- Global Employee Network: With over 2,000 employees across offices in London, New York, and Boston, Federated Hermes showcases its strategic global operations and commitment to providing comprehensive investment management services worldwide.
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- Dividend Declaration: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of June 23, 2026, and a payable date of July 1, 2026, indicating the company's commitment to providing stable income for investors.
- Tax Benefits: The fund's dividend income is exempt from both regular federal income tax and the federal alternative minimum tax (AMT), making it particularly attractive to high-tax-rate investors, which could lead to increased inflows.
- Asset Management Scale: As of March 31, 2026, Federated Hermes manages $907.1 billion in assets, underscoring its leadership in the global investment management sector and its ability to offer diverse investment solutions to over 11,000 institutions and intermediaries.
- Global Presence: With over 2,000 employees and offices in London, New York, and Boston, Federated Hermes demonstrates significant international reach and service capability, enhancing its brand value and competitive position in the market.
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- Dividend Declaration: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of June 23, 2026, and a payable date of July 1, 2026, ensuring investors receive stable tax-advantaged income.
- Tax Exemption Benefits: The fund's income is exempt from both regular federal income tax and the federal alternative minimum tax (AMT), providing investors with a more attractive investment option, particularly in tax planning.
- Asset Management Scale: As of March 31, 2026, Federated Hermes manages $907.1 billion in assets, demonstrating its leadership in the global investment management sector and ability to offer diverse investment solutions to clients.
- Global Client Base: Federated Hermes serves over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, indicating its extensive influence and trust in the global market.
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