Key Takeaways
- • Aviva Investors launched a tokenized share class of its Sterling Liquidity Fund on the XRP Ledger (XRPL), with the firm investing £50 million (about $66 million) in the new share class.
- • The Sterling Liquidity Fund is Aviva Investors' largest fund, with approximately £22 billion in assets under management, and is a UCITS money market fund domiciled in Ireland.
- • Aviva's tokenized fund holdings now total more than £86 million (about $116 million) across two XRPL-based offerings, the second being the tokenized USD Liquidity Fund launched July 29 after Central Bank of Ireland approval.
- • The tokenized share class uses a digital twin model that keeps the existing fund structure, objectives, risk profile, liquidity features and regulatory protections unchanged.
Summary
Aviva Investors has added a sterling-denominated product to its tokenized fund lineup on the XRP Ledger, according to an announcement by Aviva Investors and Ripple. The new tokenized share class covers the Sterling Liquidity Fund, which the firm describes as its largest fund with approximately £22 billion in assets under management. Aviva has invested £50 million (about $66 million) in the share class, bringing its total tokenized fund exposure to more than £86 million (around $116 million) across two offerings.
The Ireland-domiciled fund operates as a UCITS money market fund. It uses a digital twin model to represent fund holdings on a blockchain while retaining the existing fund structure, so the tokenized shares carry the same investment objectives, risk profile, liquidity features and regulatory protections as the traditional version. Launched in 2002, the fund seeks low-risk returns and daily liquidity through high-quality, short-term sterling-denominated debt instruments. Access is limited to eligible investors with digital wallets.
The launch was supported by Komainu, a regulated institutional digital asset custodian, and Licuido, a digital infrastructure platform for tokenized real-world assets. The fund's assets are held by The Bank of New York Mellon.
The transaction marks Aviva's second tokenized fund on XRPL. The firm first partnered with Ripple in February to explore bringing traditional investment funds onto the blockchain, with Ripple describing Aviva as its first investment management partner in Europe. That partnership produced the tokenized USD Liquidity Fund, launched on XRPL on July 29 after approval from the Central Bank of Ireland.
Commenting on the launch, Aviva Investors chief executive Mark Versey said the firm was "thrilled" to announce its second tokenisation fund and that the expansion shows "our clear intent to be a leader in this area." He added that the firm believes tokenised funds "can increase efficiency and ultimately lead to improved client outcomes."
The Ireland-domiciled fund operates as a UCITS money market fund. It uses a digital twin model to represent fund holdings on a blockchain while retaining the existing fund structure, so the tokenized shares carry the same investment objectives, risk profile, liquidity features and regulatory protections as the traditional version. Launched in 2002, the fund seeks low-risk returns and daily liquidity through high-quality, short-term sterling-denominated debt instruments. Access is limited to eligible investors with digital wallets.
The launch was supported by Komainu, a regulated institutional digital asset custodian, and Licuido, a digital infrastructure platform for tokenized real-world assets. The fund's assets are held by The Bank of New York Mellon.
The transaction marks Aviva's second tokenized fund on XRPL. The firm first partnered with Ripple in February to explore bringing traditional investment funds onto the blockchain, with Ripple describing Aviva as its first investment management partner in Europe. That partnership produced the tokenized USD Liquidity Fund, launched on XRPL on July 29 after approval from the Central Bank of Ireland.
Commenting on the launch, Aviva Investors chief executive Mark Versey said the firm was "thrilled" to announce its second tokenisation fund and that the expansion shows "our clear intent to be a leader in this area." He added that the firm believes tokenised funds "can increase efficiency and ultimately lead to improved client outcomes."
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