Key Takeaways
- • Four of the top five U.K. asset managers have now taken tangible steps toward fund tokenization, with Aviva Investors launching a tokenized share class for its U.S. Dollar Liquidity Fund in July 2026 and Schroders receiving regulatory approval for a tokenized U.S. dollar money market fund share class.
- • Aviva Investors' tokenized fund represents a regulatory milestone, having received approval from the Central Bank of Ireland—marking a regulatory first for tokenized fund structures—and partnered with Ripple, a blockchain infrastructure provider, to enable the launch.
- • The tokenized share class targets institutional investors with digital wallets, with assets custodied by The Bank of New York Mellon, while maintaining the underlying investment strategy of the original U.S. Dollar Liquidity Fund launched in 2020, which focuses on low-risk returns and daily liquidity through high-grade short-term debt instruments.
- • Asset managers emphasize operational efficiency and enhanced institutional access, with Aviva's CEO Mark Versey highlighting that tokenization introduces "enhanced operational capabilities and a digital access route for eligible institutional investors" and can support "greater efficiency, transparency and connectivity across investment markets."
- • Schroders' CFO Meagen Burnett cited J.P. Morgan's Kinexys platform as supporting secure execution and operational efficiency in the tokenized fund structure.
Summary
U.K. asset managers are advancing fund tokenization initiatives at an accelerating pace. In July 2026, Aviva Investors launched the first tokenized share class of its U.S. Dollar Liquidity Fund, following a partnership with Ripple established earlier in the year. Separately, Schroders received regulatory approval for its first tokenized share class targeting a U.S. dollar money market fund. These developments signal that four of the top five U.K. asset managers have now implemented tangible tokenization steps, according to the Tokenization Insight newsletter.
Aviva's tokenized share class represents a regulatory watershed moment. The Central Bank of Ireland granted approval on July 29, 2026, marking the first regulatory authorization of its kind for a tokenized fund structure. The fund itself—originally launched in 2020—targets low-risk returns and daily liquidity by providing investors exposure to high-grade U.S. dollar-denominated short-term debt instruments. The new tokenized share class is accessible to eligible institutional investors holding digital wallets, with all assets held in custody by The Bank of New York Mellon, ensuring institutional-grade safeguards.
Mark Versey, chief executive at Aviva Investors, characterized the launch as a significant milestone in the firm's innovation agenda. He stated that while the underlying investment strategy remains unchanged, "this new share class introduces enhanced operational capabilities and a digital access route for eligible institutional investors." Versey emphasized that tokenization technology can support "greater efficiency, transparency and connectivity across investment markets over time, ultimately helping to deliver better client experiences and outcomes."
Schroders' parallel regulatory approval was supported by Kinexys by J.P. Morgan, according to CFO Meagen Burnett, which was designed to enhance operational efficiency and execute secure transactions. These initiatives reflect a broader institutional consensus that blockchain-based fund structures can streamline settlement, custodial processes, and investor accessibility while maintaining regulatory compliance and asset security standards necessary for institutional capital management.
Aviva's tokenized share class represents a regulatory watershed moment. The Central Bank of Ireland granted approval on July 29, 2026, marking the first regulatory authorization of its kind for a tokenized fund structure. The fund itself—originally launched in 2020—targets low-risk returns and daily liquidity by providing investors exposure to high-grade U.S. dollar-denominated short-term debt instruments. The new tokenized share class is accessible to eligible institutional investors holding digital wallets, with all assets held in custody by The Bank of New York Mellon, ensuring institutional-grade safeguards.
Mark Versey, chief executive at Aviva Investors, characterized the launch as a significant milestone in the firm's innovation agenda. He stated that while the underlying investment strategy remains unchanged, "this new share class introduces enhanced operational capabilities and a digital access route for eligible institutional investors." Versey emphasized that tokenization technology can support "greater efficiency, transparency and connectivity across investment markets over time, ultimately helping to deliver better client experiences and outcomes."
Schroders' parallel regulatory approval was supported by Kinexys by J.P. Morgan, according to CFO Meagen Burnett, which was designed to enhance operational efficiency and execute secure transactions. These initiatives reflect a broader institutional consensus that blockchain-based fund structures can streamline settlement, custodial processes, and investor accessibility while maintaining regulatory compliance and asset security standards necessary for institutional capital management.
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