Aviva Investors has introduced a digital share class for its £22 billion Sterling Liquidity Fund on the XRP Ledger, backing the new product with a £50 million investment. The Monday launch marks the second money market fund in the firm's collaboration with Ripple, bringing combined investments across its two tokenized share classes to more than £86 million.
The launch represents a significant expansion of Aviva's tokenization strategy, bringing one of Europe's largest money market funds onto blockchain infrastructure while preserving the conventional fund's investment objectives, risk profile, daily liquidity and regulatory safeguards.
Digital-Twin Structure
The new share class uses a digital-twin structure, allowing fund ownership to be represented on the XRP Ledger while the underlying portfolio and existing fund arrangements remain unchanged. The £22 billion in assets refers to the conventional Sterling Liquidity Fund's total holdings rather than the sum moved on-chain.
Aviva said the tokenized shares would offer an additional avenue for eligible investors to access the conventional fund. The setup keeps intact the same investment goals, risk characteristics, liquidity features and safeguards that conventional shareholders receive.
As Aviva Investors' biggest fund, the Sterling Liquidity Fund holds high-quality, short-duration debt denominated in British pounds. Established in 2002, the Ireland-domiciled UCITS money market fund targets low-risk returns and provides daily liquidity for investors managing cash holdings.
Qualified investors can reach the tokenized shares through digital wallets, even as the traditional fund keeps its regulated framework. The tokenization arrangement does not change the fund's underlying investment holdings into XRP. Investors retain interests in a regulated money market fund, while blockchain records support the digital share class.
Infrastructure and Custody
Four firms underpin the fund's blockchain and custody setup: Ripple, Komainu, Licuido and BNY Mellon. Komainu serves as an institutional digital asset custodian for the new share class, working alongside Licuido, whose platform handles the issuance and management of tokenized financial assets.
Custody of the fund's underlying portfolio remains with BNY Mellon. For Licuido, the sterling product extends work that began with Aviva's July dollar-fund launch.
According to Ripple, the XRP Ledger handles the issuance and administration of Aviva's tokenized fund shares at low transaction cost. The network has processed more than 4 billion transactions since 2012, supports nearly 8 million active wallets and is maintained by more than 130 independent validators, according to the announcement.
Previously, Ripple has invested in tokenization providers ZILO and Licuido, expanding the infrastructure available for digital fund distribution and asset management.
Second Tokenized Fund
The sterling product follows Aviva's first tokenized fund launch on July 29, when it introduced a digital share class for its U.S. Dollar Liquidity Fund. That earlier offering received approval from the Central Bank of Ireland, with access limited to eligible investors using digital wallets.
The latest announcement identifies a £50 million ($66 million) investment by Aviva in the sterling share class. Combined investments across the firm's sterling and dollar tokenized offerings now exceed £86 million, making Aviva one of Europe's largest tokenized money market fund providers, according to the companies.
The reported combined total remains separate from the £22 billion held by the conventional sterling fund. The companies did not disclose how many outside investors had subscribed to the sterling class or whether the new investment structure would introduce additional settlement services.
Executive Commentary
Mark Versey, CEO of Aviva Investors, said the launch demonstrated the company's commitment to expanding its tokenized investment products. "We believe tokenised funds can increase efficiency and ultimately lead to improved client outcomes," Versey said.
He credited Ripple's involvement in the two launches and indicated that the companies intend to continue exploring tokenization. Aviva plans to continue exploring tokenized funds with Ripple but has not announced another fund or launch date.
Nigel Khakoo, Ripple's senior vice president of trading and markets, said financial institutions are increasingly adopting infrastructure designed for continuous access and faster settlement. "Markets are moving to 24/7 access and settlement is moving to real-time, always-on rails," he said.
Industry Context
Aviva's latest offering joins a growing selection of institutional funds using blockchain infrastructure for digital ownership records and distribution. On October 22, JPMorgan Asset Management expanded two money market funds, MONY and JLTXX, onto Solana for qualified U.S. investors.
Its MONY fund targets U.S. Treasury securities and Treasury-backed repurchase agreements, while JLTXX requires approved wallet addresses for transactions involving tokenized shares. Franklin Templeton has expanded its Benji tokenized fund platform across several blockchains, including Stellar, Ethereum and Solana.
BlackRock's BUIDL fund has likewise introduced tokenized share classes on multiple networks. Aviva's sterling launch arrives immediately before Ripple's Swell conference in New York, scheduled for October 27-29, where tokenization and institutional blockchain adoption are expected to feature among the discussions.
Conclusion
Aviva Investors has launched a tokenized share class of its £22 billion Sterling Liquidity Fund on the XRP Ledger, investing £50 million in the new offering. Combined investments across the firm's sterling and dollar tokenized offerings now exceed £86 million. The companies intend to continue exploring tokenization, though no additional fund launches have been announced.
Frequently Asked Questions
What is the size of Aviva's Sterling Liquidity Fund?
The Sterling Liquidity Fund manages £22 billion in assets, making it Aviva Investors' largest fund. The fund invests in high-grade, short-term debt instruments denominated in British pounds.
How much has Aviva invested in tokenized funds?
Aviva has invested more than £86 million ($116 million) across its two tokenized share classes, including £50 million in the new sterling product and its earlier U.S. dollar liquidity fund launched in July.
What blockchain infrastructure supports the tokenized fund?
The fund uses the XRP Ledger for blockchain infrastructure, with support from Ripple, Komainu, Licuido and BNY Mellon. Komainu provides digital asset custody, Licuido offers tokenization infrastructure, and BNY Mellon custodies the underlying assets.
When did Aviva launch its first tokenized fund?
Aviva launched its first tokenized fund on July 29, introducing a digital share class for its U.S. Dollar Liquidity Fund. That offering received approval from the Central Bank of Ireland.
What is a digital-twin structure in tokenized funds?
A digital-twin structure allows fund ownership to be represented on the blockchain while the underlying portfolio and existing fund arrangements remain in place. The conventional fund's investment objectives, risk profile and regulatory protections are preserved.
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