Ripple News: Aviva Investors Picks XRP Ledger for Tokenized Shares in £22B Fund

Aviva Investors has launched a tokenized share class of its £22 billion Sterling Liquidity Fund on the XRP Ledger. The Monday launch expands its partnership with Ripple, following the introduction of its first tokenized money market fund in July.

Ad

Ad

Aviva Investors Expands Tokenized Fund Offering on XRP Ledger

The new share class will enable qualified investors to buy and sell shares in Aviva’s flagship liquid fund via digital wallets. Aviva has contributed £50m to the offering, which will give it exposure to high-quality short-term sterling-denominated debt instruments.

Founded in 2002, the goal of the fund is to offer low-risk returns and to give investors daily liquidity. The current structure remains unchanged, but the new share class enables investors to own digital shares of their investments.

Aviva employs a digital-twin model in which funds are stored on the XRP Ledger, with the corresponding assets kept off-chain. This setup maintains the investment goals, risk profile, and investor protection measures of the fund as it relates to using the tokenized share class.

The launch adds to Aviva’s current liquidity fund distribution via blockchain infrastructure, without altering the management of underlying investments.

Ad

Ad

Sterling Fund Launch Follows July USD Tokenization

The expansion builds on Aviva’s July launch of tokenized shares in its USD Liquidity Fund. The asset manager’s partnership with Ripple established in February was the first tokenized fund offering by the company.

Now that the sterling offering is out, Aviva has added to its tokenized fund product portfolio in both major currencies. The company has invested over £86 million in both share classes, including its £50 million sterling investment.

This investment brings Aviva to be one of the largest issuers of tokenized money market funds in Europe, the company said. The latest addition takes an established sterling investment product onto the same blockchain infrastructure that was used with its dollar option.

The second launch marks the baseline for further growth in the firm’s tokenization capabilities, said Aviva Investors CEO Mark Versey. The company anticipates that tokenized funds will enhance efficiency and client results as the partnership with Ripple continues, he stated.

Ripple and Custody Partners Support Digital Fund Infrastructure

To support the expanded offering, Aviva continues working with Komainu and Licuido, which supported its first tokenized launch. Licuido provides the tokenization infrastructure, while Komainu handles institutional digital asset custody.

Meanwhile, BNY Mellon remains responsible for holding the fund’s underlying assets, maintaining the existing custody arrangements. Eligible investors can access the tokenized shares through digital wallets while retaining the protections available under the conventional fund structure.

The launch follows Ripple’s August investment in Licuido, alongside its investment in fund technology provider ZILO. Those investments focused on developing infrastructure for issuing, managing and transferring tokenized financial assets.

Ripple executive Nigel Khakoo said markets are moving toward continuous access and real-time settlement. Aviva plans to continue exploring tokenized funds with Ripple but has not announced another fund or launch date.