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

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 a blockchain-based way for eligible investors to access an existing regulated fund. The Aviva Investors announcement says Aviva put £50 million into the new class; the £22 billion figure is the size of the whole fund, not the amount represented by tokens.

The launch extends Aviva’s tokenisation work beyond its US dollar liquidity fund, whose tokenised share class launched in July. The sterling fund dates to 2002 and invests in high-grade, short-term debt denominated in pounds. Under the companies’ “digital twin” model, holdings are represented on-chain while the fund keeps its existing off-chain structure, according to The Block’s report on the launch.

What changes for investors in the sterling fund?

Eligible investors with digital wallets can access the new share class on XRPL, while the underlying fund remains an Ireland-domiciled UCITS money market fund. Aviva says the tokenised class has the same investment objective, risk profile, liquidity characteristics and regulatory protections as its conventional counterpart. The fund targets low-risk returns and daily liquidity, but Aviva’s own risk disclosures say money market funds are not deposits, their prices can fluctuate and investors may not get back their principal.

The difference is the digital access layer and on-chain representation of holdings, rather than a move of the fund’s portfolio onto the ledger. The Bank of New York Mellon holds the fund’s assets; digital asset custodian Komainu and infrastructure provider Licuido supported the launch, Aviva says. The arrangement retains established fund and custody structures while adding blockchain infrastructure. Whether that produces faster or cheaper operations for investors is not quantified in the announcement.

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

It is the second tokenised share class Aviva has launched with Ripple on XRPL. The first, for its US dollar liquidity fund, launched on 29 July. Aviva says more than £86 million is invested across the two tokenised offerings, including £50 million from Aviva in the new sterling class. That combined total shows the scale disclosed by the firm, but does not identify outside subscriptions to the sterling class.

Compared with holding conventional shares in the fund, the tokenised class adds wallet-based access and on-chain records, while keeping the same stated fund objective and risk profile. Compared with launching a separate crypto-native product, it attaches tokens to an existing regulated fund and leaves its portfolio and assets within the existing structure. That preserves familiar fund arrangements, but eligibility remains limited and the announcement does not detail how subscriptions, redemptions or transfers work in practice.

What will show whether the model gains traction?

Aviva calls this an expansion of its tokenised offering and says the two classes have more than £86 million invested. That is an early measure of capital in the offerings, not evidence on its own of broad investor demand or operational gains. The next useful signals are disclosed uptake beyond Aviva’s £50 million investment, more detail on how wallet holders transact with the share class, and evidence of whether tokenisation improves fund distribution or servicing.

The sterling launch moves Aviva’s existing fund structure onto a second digital access route. Its significance will depend on whether eligible clients use that route and whether the added infrastructure delivers measurable benefits while retaining the protections and daily liquidity characteristics the firm says remain unchanged.

Sources and documents

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