Aviva Investors, the investment arm of British insurer Aviva, has expanded its tokenization partnership with Ripple. The company launched a new share class of its sterling liquidity fund on the XRP Ledger. Aviva invested £50 million in the new tokenized share class.
The companies announced the details on Monday, October 26. The Sterling Liquidity Fund, with approximately £22 billion in assets, is Aviva Investors’ largest fund. The new share class allows investors to access the fund through tokens.
The launch marks Aviva Investors’ second tokenized fund share class on the XRP Ledger. The company introduced a similar offering for its dollar-denominated liquidity fund in July. Total investment across the two tokenized share classes now exceeds £86 million.
New Shares of the £22 Billion Fund Move Onchain
The £22 billion figure in the announcement represents the Sterling Liquidity Fund’s total assets. The initial investment in the new tokenized share class amounts to £50 million. The announcement therefore does not mean that the fund’s entire portfolio has moved onto a blockchain.
Aviva launched the fund in 2002 to invest in high-quality, short-term debt instruments. The sterling-denominated portfolio targets low-risk returns and daily liquidity. The Ireland-domiciled product operates as a UCITS money market fund.
The new offering represents investors’ fund holdings on a blockchain. Investors can therefore participate in the existing investment strategy through digital shares. The underlying portfolio continues to operate within its conventional structure.
The company describes this approach as a “digital twin” model. It adds a digital access layer to the existing fund structure. This allows Aviva to represent investors’ holdings onchain while preserving the portfolio’s operations.
Custody and Investment Terms Follow the Existing Framework
Eligible investors with digital wallets can access the new share class. The Bank of New York Mellon holds the fund’s assets. Institutional digital asset custodian Komainu and infrastructure platform Licuido also supported the launch.
According to Aviva, the tokenized shares retain the conventional fund’s investment objective and risk profile. Liquidity characteristics and regulatory protections also follow the existing framework. Tokenization therefore brings share ownership into a digital format without changing the fund’s investment strategy.
The structure also highlights the distinction between using the XRP Ledger and investing in XRP. Aviva’s announced £50 million investment concerns the new fund share class. The company did not announce an equivalent purchase of XRP.
The institutional adoption in this announcement involves using blockchain infrastructure to issue and manage fund shares. Interpreting it as a direct XRP purchase would therefore misrepresent the development.
Aviva Plans to Expand Its Tokenized Offerings
Aviva Investors CEO Mark Versey views the new product as a continuation of the company’s tokenization ambitions. Versey believes tokenized funds could improve efficiency and deliver better outcomes for clients. The company also plans to explore further tokenization opportunities with Ripple.
Speaking to Financial News, senior investment director Alastair Sewell highlighted growing interest from institutional investors. Sewell said incoming enquiries encouraged the company to move from monitoring tokenization to developing products. Aviva Investors also wants to explore tokenized fund opportunities across other asset classes.
However, the company will continue to prioritize money market funds in the initial phase. New distribution channels could help it reach investors familiar with the digital asset ecosystem. The sterling fund offering represents the latest step in that strategy.
