Aviva Investors, the asset management arm of UK insurer Aviva plc, has launched a tokenized share class for its Sterling (GBP) Liquidity Fund on the XRP Ledger, according to a Monday statement. The move marks the firm’s second tokenization of an existing fund, after a tokenized share class for its USD Liquidity Fund in July.
The Sterling Liquidity Fund is Aviva Investors’ largest fund and manages approximately £22 billion in assets. Across the two tokenized share classes, the firm has attracted more than £86 million ($116 million) in investment, including a £50 million ($66 million) investment by Aviva in the new sterling-denominated offering. Aviva Investors said the launch makes it among Europe’s largest providers of tokenized money market funds.
Digital twin structure
The fund is an Ireland-domiciled UCITS money market fund. It uses a “digital twin” structure to represent holdings on a blockchain without replacing the existing off-chain fund framework. Investors receive the same investment objective, risk profile, liquidity characteristics and regulatory protections as those available through the conventional fund.
First launched in 2002, the fund seeks low-risk returns and daily liquidity by investing in high-grade, short-term debt instruments denominated in British pounds.
Supporting partners
Komainu, an institutional digital asset custodian, and Licuido, a platform providing digital infrastructure for tokenizing and trading real-world assets, supported the launch. The offering is open to eligible investors with digital wallets, while The Bank of New York Mellon remains custodian of the fund’s assets.
Aviva Investors said the structure operates within existing regulatory frameworks and provides a scalable basis for future changes to fund distribution and market infrastructure.
XRPL network
The XRP Ledger facilitates issuance and management of the tokenized share class with fast, secure, low-cost and energy-efficient transactions, according to the statement. Since its launch in 2012, the network has processed more than 4 billion transactions and grown to nearly 8 million active wallets, with more than 130 independent validators maintaining the network.
