Aviva Investors has expanded its tokenized investment offerings with the launch of a new tokenized share class for its Sterling Liquidity Fund on the XRP Ledger (XRPL). The announcement was made by Aviva Investors and Ripple.
According to the official blog post, the Sterling Liquidity Fund is Aviva Investors’ largest fund, with approximately £22 billion in assets under management. With this latest launch, Aviva Investors has expanded its presence in the tokenized money market fund sector. The firm now has more than £86 million, or around $116 million, invested across its two tokenized fund offerings.
Expansion of Tokenised Offerings
Aviva has also invested £50 million, worth approximately $66 million, in the new Sterling Liquidity Fund tokenized share class. The fund is based in Ireland and operates as a UCITS money market fund. It uses a digital twin model to represent fund holdings on a blockchain while keeping the existing fund structure in place. This approach allows investors to access tokenized fund shares without changing the underlying investment framework.
The fund continues to offer the same investment objectives, risk profile, liquidity features, as well as regulatory protections as its traditional version.
Launched in 2002, the fund aims to provide low-risk returns and daily liquidity through investments in high-quality, short-term debt instruments denominated in British pounds. The tokenized share class is available on the XRP Ledger, which supports the issuance and management of digital assets through fast and low-cost transactions.
The launch was supported by Komainu, a regulated institutional digital asset custodian, and Licuido, a digital infrastructure platform for tokenized real-world assets. The fund’s assets are held by The Bank of New York Mellon. Access is limited to eligible investors with digital wallets.
Aviva’s Second Fund
This is the second tokenized fund Aviva Investors has brought to the XRP Ledger. It first teamed up with Ripple in February to explore bringing traditional investment funds onto the blockchain. At the time, Ripple called Aviva its first investment management partner in Europe. The partnership led to the launch of Aviva’s tokenized USD Liquidity Fund on XRPL on July 29, after receiving approval from the Central Bank of Ireland.
Commenting on the development, Aviva Investors’ chief exec, Mark Versey, said,
“We’re thrilled to be able to announce the launch of our second fund in the tokenisation space, with the addition of the new tokenised share class for our GBP Liquidity Fund. This expansion of our tokenised offering shows our clear intent to be a leader in this area and sets the groundwork for a future expansion of our capabilities. We believe tokenised funds can increase efficiency and ultimately lead to improved client outcomes.”
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