Aviva adds £22bn sterling fund share class to XRP Ledger

Aviva Investors and Ripple launched a tokenised share class of Aviva’s £22 billion Sterling Liquidity Fund on the XRP Ledger on 26 October, adding an on-chain route into an existing fund while leaving its underlying structure off-chain. The launch is Aviva’s second tokenised fund offering, following a US dollar share class introduced in July. In its announcement, Aviva Investors said it had invested £50 million in the new share class, and more than £86 million was invested across both offerings.

The sterling fund is an Ireland-domiciled UCITS money market fund, launched in 2002. It invests in high-grade, sterling-denominated short-term debt and targets low-risk returns with daily liquidity, according to Aviva. The new share class represents holdings on-chain through what the firm calls a “digital twin” model; the fund itself retains its existing off-chain structure. That distinction matters: the £22 billion figure describes the whole fund’s assets under management, not the amount represented by tokens.

What changes for investors in the tokenised share class?

Eligible investors with digital wallets can access the share class on XRPL. Aviva says it has the same investment objective, risk profile, liquidity characteristics and regulatory protections as the conventional fund. The assets remain with the fund’s custodian, The Bank of New York Mellon, while regulated digital asset custodian Komainu and infrastructure provider Licuido supported the launch.

Tokenisation changes how holdings are represented and accessed; the announcement does not describe a change to the fund’s investments or its daily-liquidity terms. The fund continues to hold short-term sterling debt, and the usual money market risks remain: Aviva cautions that the investment is not a deposit, its price can fluctuate and investors may not recover their principal. A digital representation of a share does not remove those underlying risks.

How does the launch compare with Aviva’s first tokenised fund?

The sterling share class extends a rollout that began with Aviva’s USD Liquidity Fund in July. That earlier share class was also issued on XRPL and supported by Komainu and Licuido; Aviva said it received Central Bank of Ireland approval. The sterling launch therefore broadens the currencies available through Aviva’s tokenised offerings, while retaining a similar structure and partner set.

The Block’s report on the launch also describes the model as representing investor holdings on-chain while the fund operates off-chain. This is a narrower change than moving the fund’s assets or operations onto a blockchain. Aviva says XRPL will be used to issue and manage the tokenised share class, but the announcement does not quantify any reduction in cost or settlement time for investors.

What will show whether the model gains traction?

The immediate signals are how much eligible investors subscribe and whether Aviva adds more funds to its tokenised range. The firm said total investment across its two tokenised share classes exceeds £86 million, including its £50 million commitment to the sterling class. That provides a starting measure of adoption, although it does not establish broader investor demand or demonstrate operational savings.

Aviva says the share class is designed to fit within existing regulatory frameworks and may provide a foundation for future changes to fund distribution and market infrastructure. The next evidence to watch is whether the firm reports further launches, explains how tokenised holdings are administered alongside conventional shares, or provides measurable results on efficiency. Until then, the confirmed change is an additional digital access layer for an established fund, with its investment mandate, custody of underlying assets and stated investor protections maintained.

Sources and documents

• announcement, Aviva Investors said — avivainvestors.com
• The Block’s report on the launch — theblock.co