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Aviva tokenizes £22bn sterling fund share class on XRP Ledger

Aviva has put £50 million into a tokenized share class of its £22 billion sterling fund on XRPL, extending its Ripple partnership and digital fund offering.

Uruguay Can Editorial

Aviva tokenizes £22bn sterling fund share class on XRP Ledger

Aviva Investors launched its first tokenized fund share class in July. On 26 October, it added a sterling share class on the XRP Ledger, extending its partnership with Ripple to its largest fund. The Aviva Investors announcement puts the fund’s assets at about £22 billion and says Aviva invested £50 million in the new share class.

What is being tokenized?

The tokenized shares represent access to the Aviva Investors Sterling (GBP) Liquidity Fund, an Ireland-domiciled UCITS money market fund first launched in 2002. The underlying fund remains off-chain: Aviva describes the structure as a “digital twin” model, where holdings are represented on the XRP Ledger while the existing fund structure stays in place. The Block’s report on the launch likewise says the fund itself continues to operate off-chain.

How do investors access the share class?

Aviva says access is for eligible investors with digital wallets. The arrangement works through several parts:

  1. Investors hold the tokenized share class through a digital wallet.
  2. The XRP Ledger provides the on-chain record for the represented holdings.
  3. The Bank of New York Mellon holds the fund’s assets; digital asset custodian Komainu and infrastructure provider Licuido supported the launch.

Aviva says investors receive the same investment objective, risk profile, liquidity characteristics and regulatory protections as in the conventional fund. The fund targets daily liquidity and invests in high-grade, sterling-denominated short-term debt instruments, according to the announcement.

How much has Aviva committed to tokenized funds?

The £50 million investment in the sterling share class brings Aviva’s investment across its two tokenized offerings to more than £86 million, according to the company. Its first was a US dollar liquidity fund share class launched in July. The new offering expands tokenized access to an existing regulated fund; Aviva says it plans to continue exploring tokenization with Ripple.

Sources