Key points
- Aviva is tokenizing shares of its £22 billion fund.
- The new GBP share class starts at £50 million.
- Funds invested on the XRP Ledger have exceeded £86 million in total.
Ripple has helped Aviva Investors launch a tokenized share class of its largest fund on the XRP Ledger, extending the UK asset manager’s blockchain strategy to a £2.2 billion sterling money market portfolio.
This new product, launched with an investment of £50 million, brings Aviva’s combined holdings in its two tokenized share classes to over £86 million, approximately $116 million.
According to Ripple's announcement on October 26, this launch follows Aviva’s introduction of the first tokenized money market product in July and marks its second live fund product on the XRPL.
Aviva extends tokenization of the XRP Ledger to its largest fund
The new share class is part of the Aviva Investors Sterling Liquidity Fund, a UCITS money market fund registered in Ireland and established in 2002.
The traditional fund manages approximately £22 billion in assets, investing in high-quality, short-term sterling-denominated debt instruments with the goal of delivering relatively low-risk returns and daily liquidity.
Importantly, the entire £2.2 billion portfolio has not been transferred to the XRP Ledger. Instead, investors gain access to tokenized representations of the existing fund shares.
Aviva has invested £50 million in the new share class, and the combined size of its pound and dollar tokenized products now exceeds £86 million.
This expansion builds on Aviva’s early Ripple partnership announced in February and follows the launch of its first fund in July.
How Ripple and BNY support Aviva's tokenized shares
Aviva uses a digital twin structure, meaning that the blockchain tokens represent holdings in existing regulated investment funds, rather than newly created cryptocurrencies.
The underlying assets are still held by BNY as the fund custodian. Komainu provides regulated digital asset custody services, while Licuido offers tokenization infrastructure.
Eligible investors can access these tokenized shares through a digital wallet while retaining the investment objectives, risk profiles, liquidity characteristics, and regulatory protections of traditional funds.
This model is similar to deployments by other institutions, such as Brazil’s CSD BR initiative, which mirrors existing securities records on the XRPL without migrating the entire underlying market to blockchain infrastructure.
Ripple has also invested in companies such as Licuido to develop broader tokenization infrastructure for asset managers.
What does Aviva's expansion in adopting the XRP Ledger mean?
This launch brings another established financial institution into the growing real-world asset ecosystem of the XRPL.
Earlier this month, Franklin Templeton issued an additional $150 million in tokenized fund shares on the XRPL, bringing its recorded holdings close to $200 million.
These two developments indicate growing institutional interest in representing regulated money market fund investments on public blockchain infrastructure.
However, Aviva's tokenized shares do not mean purchasing XRP worth £86 million, and the announcement does not establish a direct price bullish case for this cryptocurrency.
XRPL transactions require XRP to pay network fees, but these costs are relatively low.
The network also supported pilot programs for tokenized government bond settlements involving Ripple, Mastercard, Ondo, and JPMorgan.