Aviva Investors, Ripple launch tokenized share class of $29 billion sterling fund on XRP Ledger

Aviva Investors, the asset management arm of UK insurer Aviva, has launched a tokenized share class of its £22 billion ($29.4 billion) Sterling Liquidity Fund on the XRP Ledger, working with blockchain payments firm Ripple.

Aviva invested £50 million ($66.7 million) in the new share class, according to a Monday announcement. The firm now has more than £86 million ($114.8 million) invested across its two tokenized money market fund offerings, including a U.S. dollar liquidity fund share class launched in July.

The Sterling Liquidity Fund, which dates back to 2002, invests in high-grade, sterling-denominated short-term debt instruments and offers daily liquidity. It is domiciled in Ireland and operates as a UCITS money market fund. Under the fund's "digital twin" model, investors' holdings are represented onchain, but the fund itself continues to operate offchain.

Second tokenized fund on XRPL

Investors need an eligible digital wallet to access the new share class. BNY Mellon holds the fund's assets, while digital asset custodian Komainu and digital infrastructure platform Licuido also supported the launch. Aviva said the tokenized shares carry the same investment objective, risk profile, liquidity characteristics, and regulatory protections as the conventional fund.

Aviva first partnered with Ripple in February, with plans to bring some of its traditional investment funds onto the XRP Ledger. Ripple said at the time that Aviva was its first European investment management partner. Aviva subsequently launched its tokenized USD Liquidity Fund share class on the XRP Ledger on July 29, with approval from the Central Bank of Ireland.

"We believe tokenized funds can increase efficiency and ultimately lead to improved client outcomes," Aviva Investors CEO Mark Versey said in the announcement. He added that the firm plans to explore further tokenization opportunities with Ripple.