Aviva Investors, the asset management arm of Aviva plc, launched a tokenized share class for its £22 billion Sterling Liquidity Fund on the XRP Ledger on 26 October 2026. The Ireland-domiciled UCITS money market fund, originally launched in 2002, invests in high-grade sterling short-term debt and maintains daily liquidity. This marks the second tokenized offering from Aviva after its USD Liquidity Fund class debuted in July 2026.
Aviva Tokenized Fund Structure and Operational Details
The new share class uses a digital twin model on the XRP Ledger. On-chain tokens represent fund holdings while the existing off-chain structure, investment objectives, risk profile and regulatory protections stay unchanged. Custodian The Bank of New York Mellon continues to hold underlying assets. Total investments across both tokenized classes now exceed £86 million, with Aviva itself committing £50 million to the sterling class.
Regulated institutional custodian Komainu and tokenization platform Licuido support the setup. Eligible investors access the class through digital wallets. The offering operates within current regulatory frameworks without altering the fund’s liquidity or credit characteristics. Aviva Investors CEO Mark Versey stated the launch aims to improve client outcomes through greater efficiency in fund operations.
Daily liquidity remains available to participants. The structure preserves the fund’s existing settlement processes while adding on-chain representation for faster record-keeping. This approach allows institutions to test blockchain integration without modifying core investment mandates or custody arrangements.
Partnership Timeline and Market Context
Aviva Investors began its partnership with Ripple in February 2026. The company now ranks among the larger tokenized money market fund providers in Europe. Combined tokenized assets under management across the USD and GBP classes reached £86 million within four months of the first launch.
The Sterling Liquidity Fund manages approximately £22 billion in assets and focuses on short-term, high-grade sterling instruments. Tokenization adds 24/7 potential settlement capabilities while the underlying portfolio and risk controls stay identical to the conventional share class. Ripple executive Nigel Khakoo noted the move supports real-time settlement and continuous access for institutional clients.
Real world assets on public ledgers such as the XRP Ledger have drawn increasing interest from traditional asset managers seeking operational improvements. Aviva’s dual-class model demonstrates how established UCITS funds can add tokenized exposure without replacing existing infrastructure. The £50 million seed from Aviva itself provides immediate scale and demonstrates internal commitment to the format.
Investor Access and Future Infrastructure Impact
Eligible institutional investors with compatible digital wallets can now subscribe to the tokenized share class. The launch supplies a scalable base for additional fund distribution innovations, though no further specific timelines were released. Institutions evaluating real world assets on blockchain can review Aviva’s model for regulatory compliance and custody continuity.
The structure maintains full alignment with existing UCITS rules and BNY Mellon custody. Participants receive the same credit quality and liquidity terms as conventional shares while gaining on-chain transparency. This combination addresses common institutional requirements for both regulatory adherence and operational testing of distributed ledger technology.
Frequently asked questions
How does the digital twin model work for the Aviva tokenized fund?
The model keeps the existing fund structure, investment rules and custodian unchanged while issuing on-chain tokens on the XRP Ledger that represent ownership. Investors receive the same liquidity and risk profile as the conventional class.
What is the current size of investments in Aviva’s tokenized offerings?
Combined tokenized assets across the USD and sterling classes exceed £86 million as of late October 2026, including a £50 million commitment from Aviva to the new sterling share class.
Which platforms support the Aviva tokenized fund on XRPL?
Komainu provides regulated custody for digital assets and Licuido supplies the tokenization platform. Eligible investors access the class through digital wallets that connect to the XRP Ledger.
When did Aviva Investors begin its work with Ripple on tokenization?
The partnership started in February 2026. The sterling liquidity tokenized class follows the USD Liquidity Fund class that launched in July 2026.
By YasTech Editorial
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