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Federated Hermes has launched a money market fund designed to meet the reserve rules for payment stablecoin issuers under the GENIUS Act. The company introduced the Federated Hermes Money Market Management Digital Treasury Fund–Reserve Shares on June 9, 2026.
The fund trades on Nasdaq under the ticker OFFXX. It invests in US dollar cash, short-term Treasury securities and overnight Treasury-backed repurchase agreements. These assets match the reserve categories permitted under the federal stablecoin law.
Federated Hermes structured OFFXX to serve stablecoin issuers that need eligible assets for their token reserves. Individuals and institutional investors can also purchase the Reserve Shares directly or through financial intermediaries.
Some intermediaries may use blockchain systems to record customer ownership. However, the Reserve Shares do not currently use blockchain technology. Federated Hermes said it may consider blockchain-based ownership records for these shares or other share classes later.
The fund operates under Rule 2a-7 of the Investment Company Act of 1940. This rule sets standards for US money market funds, including portfolio quality, liquidity and maturity limits.
OFFXX seeks to provide income while maintaining principal stability. Still, Federated Hermes warned that the fund may offer a lower yield than broader money market products. Its limited investment range prevents managers from buying some higher-yielding securities.
OFFXX limits its portfolio to three main asset groups. These include US dollar cash, Treasury securities with remaining maturities of 93 days or less and overnight repurchase agreements fully backed by US Treasuries.
The GENIUS Act lists the same categories as eligible reserves for permitted payment stablecoin issuers. The law requires issuers to maintain reserve assets equal to the total value of stablecoins in circulation on at least a 1:1 basis.
The United States enacted the GENIUS Act on July 18, 2025. It created a federal framework covering reserve management, token redemptions and operating standards for payment stablecoin companies.
Meanwhile, the Office of the Comptroller of the Currency issued proposed implementation rules on February 25, 2026. The proposal covers national banks, federal savings associations and nonbank companies seeking federal stablecoin licences. It also covers some foreign issuers that serve US customers.
Federal agencies are still completing parts of the framework. As a result, stablecoin companies are preparing systems for reserve reporting, risk controls and redemption requests.
Federated Hermes managed $684.7 billion in money market assets as of March 31, 2026. Its total assets under management reached $907.1 billion during the same period.
The company has operated in the money market sector for more than 50 years. In 1974, it launched the first fund to include the term “money market” in its name.
Susan Hill, head of the government liquidity group, and senior portfolio manager John Wyda manage OFFXX. The company presented the product as an extension of its established liquidity management business.
“Liquidity management is a core business of Federated Hermes, and we offer one of the largest menus of targeted solutions,” Paul A. Uhlman, president and chief executive of the Federated Advisory Companies, said.
Uhlman added that the firm continues to review opportunities involving blockchain systems and tokenized money market products. Yet the company has not confirmed when, or whether, it will place OFFXX ownership records directly on a blockchain.
Moreover, the launch gives payment stablecoin issuers access to a regulated fund that holds assets listed under the GENIUS Act. It also connects traditional money market management with the reserve systems required for US-regulated stablecoins.
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