Aviva puts £22bn sterling fund share class on 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 a blockchain-based way for eligible investors to access the fund. Aviva’s announcement says the fund uses a “digital twin” model: investors’ holdings are represented on-chain, while the existing fund structure remains off-chain.

The steps are distinct. The fund holds exposure to high-grade, sterling-denominated short-term debt instruments. The new share class represents investors’ holdings as tokens on the XRP Ledger, a public blockchain where Aviva Investors can issue and manage that class. Eligible investors access it through digital wallets. The underlying fund assets remain with its custodian, The Bank of New York Mellon; digital asset custodian Komainu and infrastructure provider Licuido supported the launch. It is like adding a digital record of a fund holding while keeping the fund itself in its established structure.

What does the token represent?

It represents a holding in a share class of the fund, not ownership of the debt instruments directly. The fund is an Ireland-domiciled UCITS money market fund, first launched in 2002. Aviva says the tokenised class has the same investment objective, risk profile, liquidity characteristics and regulatory protections as the conventional fund. The fund targets low-risk returns and daily liquidity, but Aviva warns that investors can lose principal and that the investment is not a bank deposit.

The arrangement puts a blockchain record alongside the conventional fund structure. The Block’s report on the launch also describes the fund as continuing to operate off-chain while holdings are represented on-chain. Neither source says the tokens change what the fund invests in.

Who can access the new share class?

Aviva says it is available to eligible investors with digital wallets. The company invested £50 million in the sterling share class. Across this and its tokenised US dollar Liquidity Fund share class, launched in July, Aviva says more than £86 million is invested. The new launch is its second tokenisation of an existing fund.

What role does the XRP Ledger play?

The ledger provides the network on which the share class is issued and managed; Ripple partnered with Aviva on the launch. Aviva cites the XRPL’s transaction history, active wallets and independent validators, but the announcement does not describe the specific process for subscriptions, redemptions or transfers. The underlying fund still offers daily liquidity under its existing terms. Tokenising the share class changes how holdings are represented and accessed; it does not, by itself, establish round-the-clock dealing or instant redemption.

Source material

• announcement — avivainvestors.com
• report on the launch — theblock.co