Aviva Investors debuts first tokenized fund on XRP Ledger

Aviva Investors sees tokenization as an important evolution in asset management that can streamline investment processes and improve the investor experience.

Aviva Investors, the global asset management arm of UK insurance giant Aviva plc, has rolled out a tokenized share class for its US Dollar Liquidity Fund on the XRP Ledger, becoming the firm’s first tokenized investment fund and deepening its collaboration with Ripple.

Launched in 2020, the Aviva Investors US Dollar Liquidity Fund is backed by high-grade US dollar-denominated short-term debt with custody provided by BNY Mellon.

The blockchain-based share class offers the same investment strategy, risk profile, daily liquidity and investor protections as the conventional fund while enabling more efficient fund operations through tokenization.

“Innovation has always been central to Aviva Investors’ heritage, and we believe that tokenization is a significant development within the investment industry,” said Mark Versey, CEO of Aviva Investors, adding that the firm expects the technology to enhance operational efficiency and deliver better outcomes for clients. He said Ripple played a key role in the launch and that the partnership will continue as the companies expand their work on tokenized funds.

The launch was enabled by regulated digital asset custodian Komainu and tokenization platform Licuido, and received approval from the Central Bank of Ireland in what the companies described as a regulatory first for tokenized fund structures.

“Aviva Investors has demonstrated that it is possible to bring a regulated, institutional-grade tokenised product to market on live infrastructure, with real investor protections in place. The XRP Ledger was built for exactly this kind of application, and we expect this launch to set a strong precedent for other asset managers looking to explore tokenised fund structures,” Nigel Khakoo, SVP for Trading and Markets at Ripple, commented.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Launched in 2020, the Aviva Investors US Dollar Liquidity Fund is backed by high-grade US dollar-denominated short-term debt with custody provided by BNY Mellon.

“Innovation has always been central to Aviva Investors’ heritage, and we believe that tokenization is a significant development within the investment industry,” said Mark Versey, CEO of Aviva Investors, adding that the firm expects the technology to enhance operational efficiency and deliver better outcomes for clients. He said Ripple played a key role in the launch and that the partnership will continue as the companies expand their work on tokenized funds.

“Aviva Investors has demonstrated that it is possible to bring a regulated, institutional-grade tokenised product to market on live infrastructure, with real investor protections in place. The XRP Ledger was built for exactly this kind of application, and we expect this launch to set a strong precedent for other asset managers looking to explore tokenised fund structures,” Nigel Khakoo, SVP for Trading and Markets at Ripple, commented.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.