Aviva Investors Launches Tokenized Fund Shares on XRP Ledger

Aviva Investors launched a tokenized share class of its £22 billion Sterling Liquidity Fund on the XRP Ledger. The launch took place on Monday, October 26, and expanded the partnership with Ripple following the first tokenized money market fund introduced in July.

The new share class will allow qualified investors to buy and sell shares of the flagship liquidity fund through digital wallets. Aviva has contributed £50 million to the offering, granting it access to high-quality short-term sterling debt instruments. The fund, established in 2002, is designed for low-risk returns and daily liquidity. The fund's structure remains unchanged, but the new share class allows investors to own digital shares of their investments.

Aviva employs a digital twin model: funds are held on the XRP Ledger, while the corresponding assets remain off-chain. This approach maintains the investment objectives, risk profile, and investor protections in place for the fund. The launch expands the distribution of the liquidity fund through blockchain infrastructure without altering the management of the underlying investments.

Second launch after the dollar fund

The expansion follows the July launch of tokenized shares in the USD Liquidity Fund. The partnership with Ripple, established in February, marked the company's first tokenized fund offering. Now, Aviva has complemented its portfolio of tokenized products in both major currencies: over £86 million has been invested in both share classes, including £50 million in sterling. According to the company, this makes it one of the largest issuers of tokenized money market funds in Europe.

Aviva Investors CEO Mark Versey called the second launch a starting point for further growth in the company's tokenization capabilities. He stated that the company expects tokenized funds to enhance efficiency and improve client outcomes as the partnership with Ripple continues.

Who supports the infrastructure

To support the expanded offering, Aviva continues to work with Komainu and Licuido, who were involved in the first launch: Licuido provides the tokenization infrastructure, and Komainu is responsible for institutional custody of digital assets. BNY Mellon continues to hold the fund's underlying assets under existing arrangements. Qualified investors access the tokenized shares through digital wallets, retaining the protections provided by the traditional fund structure.

The launch followed Ripple's August investment in Licuido and its investment in fund technology provider ZILO. These investments were aimed at creating infrastructure for the issuance, management, and transfer of tokenized financial assets. Ripple Executive Director Nigel Haku stated that markets are moving towards continuous access and real-time settlements. Aviva plans to continue exploring tokenized funds with Ripple, but has not yet announced a new fund or the date of the next launch.