MORGANABLE BUSINESS / DIGITAL FINANCE
Aviva Investors has launched a tokenised share class of its Sterling Liquidity Fund on the XRP Ledger, expanding its use of blockchain technology.
Akure —
Aviva Investors has launched a tokenised share class of its Sterling Liquidity Fund on the XRP Ledger, expanding its use of blockchain technology.
Announced on October 26, the move follows the launch of a tokenised share class for its US Dollar Liquidity Fund in July. The new offering gives eligible investors another way to access an established money market fund.
The Sterling Liquidity Fund is Aviva Investors’ largest fund, with approximately £22 billion in assets under management. However, that figure represents the entire fund, not the value of shares issued in tokenised form.
Aviva says more than £86 million is invested across its two tokenised share classes. The company has invested £50 million in the new sterling offering.
Tokenisation means representing ownership of an asset through digital records on a blockchain. In this case, the tokens represent shares in an existing investment fund.
They do not represent ownership of XRP or create a new cryptocurrency. Instead, the digital record offers another way to record and manage eligible investors’ holdings.
Aviva uses what it calls a “digital twin” model. This adds a digital access layer while retaining the existing fund structure.
The tokenised share class keeps the same investment objective, risk profile, liquidity characteristics and regulatory protections as the traditional fund.
Its portfolio invests in high-quality, short-term debt instruments denominated in pounds sterling.
The fund aims to provide low-risk returns and daily liquidity. Nevertheless, investors should not confuse a money market fund with a bank deposit. Its value can fluctuate, and investors may receive less than they invested.
Interest rates, inflation and an issuer’s financial strength can affect the value of the fund’s investments. Tokenisation does not remove these risks.
HOW THE TOKENISED FUND WORKS
Aviva Investors developed the new share class with Ripple, a company that provides blockchain technology for financial services.
The firms announced a partnership in February 2026 to explore tokenising traditional investment funds.
They launched a tokenised share class for Aviva’s US Dollar Liquidity Fund in July. The sterling launch extends that work to another fund.
The XRP Ledger is a public blockchain that allows digital assets to be issued and transactions recorded. Ripple says it supports fast, low-cost transactions and uses an energy-efficient design.
Aviva will use it to issue and manage the tokenised share class. The fund’s underlying securities have not been converted into cryptocurrency.
Komainu provides institutional digital asset custody, while Licuido supplies technology that helps asset managers tokenise real-world assets.
The Bank of New York Mellon, known as BNY, remains custodian of the fund’s underlying assets. The digital record of a share is different from the assets held by the fund.
Aviva Investors wants to expand its tokenised fund offering and explore opportunities across asset classes. Chief executive Mark Versey said the second launch shows the company’s commitment.
He added that tokenised funds could improve efficiency and client outcomes. Money market funds remain an initial focus.
Interest in tokenisation has grown as financial institutions seek to modernise investment administration and distribution.
Digital records may help firms manage ownership information and coordinate transactions. Blockchain technology could also support faster settlement and new distribution channels. However, these benefits depend on each fund’s structure and the rules governing its tokens.
The new share class is intended for eligible investors who have digital wallets. It is not automatically available to every retail investor.
Applicants must meet the fund’s eligibility requirements and should read its official documents before investing.
Digital access does not remove identity checks, regulatory compliance or custody requirements.
BENEFITS, RISKS AND INDUSTRY IMPACT
Tokenisation could make some processes more efficient by recording fund ownership digitally. It may help investment firms connect traditional products with newer financial technology.
These systems could support more flexible ways to hold and manage assets. Still, these are potential benefits, not guaranteed results.
There are practical limits, too. A blockchain record does not eliminate paperwork, fees or compliance checks.
Firms must ensure digital records match the fund’s legal ownership and administration. Investors need clear information about transfer restrictions, redemptions and service providers.
Aviva’s approach leaves the investment strategy in place. Investors should therefore assess the fund based on its objectives, costs, risks and suitability, rather than assuming blockchain makes it safer or more profitable.
The tokenised format changes how eligible holdings are represented and managed, not the underlying investments.
Aviva is joining asset managers exploring tokenised investment products. BlackRock, Franklin Templeton and Schroders have also developed or explored blockchain-based fund offerings.
Their activity shows that traditional financial institutions are testing whether digital infrastructure can improve how products are issued, administered and accessed.
The figures need careful interpretation. The Sterling Liquidity Fund’s approximately £22 billion in assets covers the entire fund, while the more than £86 million figure refers to investments across Aviva’s two tokenised share classes.
These amounts measure different things. It would be inaccurate to say Aviva has moved £22 billion of assets onto the XRP Ledger.
The launch also does not establish that demand for XRP will rise. The ledger provides infrastructure for recording fund shares, but the announcement does not say investors must buy XRP to invest.
The main development concerns blockchain technology in traditional asset management, rather than a direct investment in the cryptocurrency.
Aviva’s second tokenised share class extends its digital fund strategy from US dollars to sterling. The company plans to explore further uses for tokenisation over time, although future products and timelines will depend on demand and practical considerations.
For now, the launch shows how a conventional investment fund can use blockchain infrastructure while retaining its existing portfolio, regulatory framework and investment risks.
