Aviva Investors tokenizes its largest fund on XRP Ledger

Aviva Investors, the asset management arm of UK insurance group Aviva plc, has expanded its tokenized fund offering with the launch of a tokenized share class for its Sterling (GBP) Liquidity Fund on the XRP Ledger (XRPL), according to a Monday statement.

The launch follows the introduction of a tokenized share class for the firm’s USD Liquidity Fund in July and represents its second tokenization of an existing fund.

The Sterling Liquidity Fund, Aviva Investors’ largest fund, manages approximately £22 billion in assets.

Across its two tokenized share classes, the firm has attracted more than £86 million ($116 million) in investment, including a £50 million ($66 million) investment by Aviva in the new sterling-denominated offering. The launch makes Aviva Investors among Europe’s largest providers of tokenized money market funds.

The fund is an Ireland-domiciled UCITS money market fund that uses a “digital twin” structure to represent holdings on a blockchain without replacing the existing off-chain fund framework. Investors receive the same investment objective, risk profile, liquidity characteristics and regulatory protections as those available through the conventional fund.

First launched in 2002, the fund seeks low-risk returns and daily liquidity by investing in high-grade, short-term debt instruments denominated in British pounds.

The launch has received support from Komainu, an institutional digital asset custodian, and Licuido, a platform that provides digital infrastructure for tokenizing and trading real-world assets. The offering is open to eligible investors with digital wallets, while The Bank of New York Mellon remains the custodian of the fund’s assets.

Aviva Investors said the structure operates within existing regulatory frameworks and provides a scalable basis for future changes to fund distribution and market infrastructure.

The XRPL facilitates the issuance and management of the tokenized share class with fast, secure, low-cost and energy-efficient transactions. Since its launch in 2012, the network has processed more than 4 billion transactions and grown to nearly 8 million active wallets, with more than 130 independent validators maintaining the network.