Aviva puts £22bn sterling fund share class on XRP Ledger

Aviva Investors and Ripple have launched a tokenized share class of Aviva’s £22 billion Sterling Liquidity Fund on the XRP Ledger, according to Aviva Investors’ announcement on 26 October. It is the asset manager’s second tokenized fund, following a US dollar fund share class in July.

The sterling fund dates back to 2002 and invests in high-grade, short-term debt denominated in pounds. The launch puts a digital access layer around a large conventional money market fund while leaving its underlying structure in place.

What does the token represent?

The token represents holdings in a share class; the fund’s existing structure and assets remain off-chain. Aviva calls this a “digital twin” model, in which on-chain holdings sit alongside the existing fund rather than replacing it.

The fund is an Ireland-domiciled UCITS money market fund. Aviva says the tokenized class has the same investment objective, risk profile, liquidity characteristics and regulatory protections as the conventional fund. The fund targets daily liquidity through exposure to sterling short-term debt, though the announcement does not say that token transfers themselves guarantee immediate cash redemption.

Who can invest, and who holds the assets?

The share class is available to eligible investors with digital wallets. Aviva’s announcement does not specify investor qualification criteria, minimum investment or fees.

The Bank of New York Mellon holds the fund’s assets. Digital asset custodian Komainu and infrastructure platform Licuido supported the launch, according to Aviva. The XRP Ledger is used to issue and manage the tokenized share class; this does not mean the fund’s underlying debt instruments have moved onto the blockchain.

How much of the fund is tokenized so far?

Aviva invested £50 million in the new share class, while total investment across its two tokenized share classes exceeds £86 million, the firm said. Those amounts are a small part of the £22 billion fund’s total assets; the larger figure describes the whole conventional fund, not value shifted on-chain.

The Block’s report likewise describes the fund as continuing to operate off-chain, with eligible investors using wallets to access the tokenized class. For investors, the practical change is a new digital route to a regulated fund share class, while access remains limited to those who qualify. Neither company’s announcement sets out detailed subscription or redemption procedures for the tokenized class.

Sources

• Aviva Investors’ announcement — avivainvestors.com
• The Block’s report — theblock.co