Federated Hermes Launches GENIUS Act-Compliant Money Market Fund OFFXX

Federated Hermes has announced the launch of OFFXX, its first money market fund designed to comply with the GENIUS Act. According to Foresight News, the fund is primarily aimed at stablecoin issuers, while also being open to institutional and retail investors. Federated Hermes said the fund’s collateral assets will have maturities of no more than 93 days and will invest in highly liquid assets including cash and U.S. Treasuries. The firm said OFFXX does not use blockchain technology to manage reserve share records, but it expects the fund’s shares to be used mainly by participants across the broader blockchain ecosystem. Individuals, payment stablecoin issuers, and institutional investors can buy and hold reserve shares either directly or through intermediaries, including intermediaries that use blockchain technology to maintain ownership records for clients. Federated Hermes added that the fund may later consider using blockchain technology to maintain ownership records for reserve shares or other share classes.