Key Takeaways
- • Aviva Investors launched a tokenized share class for its U.S. Dollar Liquidity Fund on July 29, 2026, marking the firm's first tokenized fund offering and receiving regulatory approval from the Central Bank of Ireland—a regulatory first for tokenized fund structures.
- • Schroders obtained regulatory approval for a tokenized share class of a U.S. dollar money market fund, positioning the firm among early movers in the institutional tokenization space.
- • Four of the top five U.K. asset managers have now taken concrete steps toward fund tokenization, signaling accelerating industry adoption of blockchain-based fund infrastructure.
- • The Aviva tokenized share class maintains the original fund's investment strategy (targeting low-risk returns and daily liquidity in short-term U.S. dollar debt instruments) while adding digital wallet access and enhanced operational capabilities for eligible institutional investors.
- • Assets in the new share class are custodied by The Bank of New York Mellon, with Aviva Investors partnering with Ripple for blockchain infrastructure, demonstrating institutional-grade custody and technical architecture.
Summary
U.K. asset managers have accelerated fund tokenization adoption, with Aviva Investors and Schroders achieving significant regulatory milestones in July 2026. Aviva Investors launched a tokenized share class of its U.S. Dollar Liquidity Fund on July 29, 2026, becoming the firm's first tokenized fund offering. The Central Bank of Ireland approved the structure, marking a regulatory precedent for tokenized fund architectures in the jurisdiction. The move reflects a partnership Aviva Investors established with Ripple, the blockchain infrastructure provider, earlier in 2026.
The tokenized share class replicates the underlying fund's investment mandate, which was originally launched in 2020 and targets low-risk returns with daily liquidity through exposure to high-grade U.S. dollar-denominated short-term debt instruments. The new digital share class extends access to eligible institutional investors holding digital wallets while preserving existing fund governance and custody arrangements—all assets remain held by The Bank of New York Mellon, the fund's custodian. This architecture allows asset managers to introduce blockchain-based settlement and ownership tracking without altering core portfolio construction or risk management.
Schroders' concurrent regulatory approval for a tokenized U.S. dollar money market fund share class reinforces industry-wide momentum. Together with the progress of L&G and other top-tier managers, four of the five largest U.K. asset managers have now undertaken tangible tokenization initiatives. Mark Versey, chief executive at Aviva Investors, characterized the launch as advancing the firm's innovation agenda, noting that tokenization "can support greater efficiency, transparency and connectivity across investment markets over time," while maintaining institutional-grade operational standards.
The regulatory endorsement by Irish authorities and custodial safeguards through BNY Mellon address key institutional concerns regarding token-based fund infrastructure. These developments signal that tokenization is shifting from technical experimentation toward regulated, operationally integrated offerings for qualified institutional investors, with compliance frameworks increasingly aligned across jurisdictions.
The tokenized share class replicates the underlying fund's investment mandate, which was originally launched in 2020 and targets low-risk returns with daily liquidity through exposure to high-grade U.S. dollar-denominated short-term debt instruments. The new digital share class extends access to eligible institutional investors holding digital wallets while preserving existing fund governance and custody arrangements—all assets remain held by The Bank of New York Mellon, the fund's custodian. This architecture allows asset managers to introduce blockchain-based settlement and ownership tracking without altering core portfolio construction or risk management.
Schroders' concurrent regulatory approval for a tokenized U.S. dollar money market fund share class reinforces industry-wide momentum. Together with the progress of L&G and other top-tier managers, four of the five largest U.K. asset managers have now undertaken tangible tokenization initiatives. Mark Versey, chief executive at Aviva Investors, characterized the launch as advancing the firm's innovation agenda, noting that tokenization "can support greater efficiency, transparency and connectivity across investment markets over time," while maintaining institutional-grade operational standards.
The regulatory endorsement by Irish authorities and custodial safeguards through BNY Mellon address key institutional concerns regarding token-based fund infrastructure. These developments signal that tokenization is shifting from technical experimentation toward regulated, operationally integrated offerings for qualified institutional investors, with compliance frameworks increasingly aligned across jurisdictions.
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