Aviva Puts £50M Into Tokenized Fund on XRP Ledger

Aviva Investors, the asset management arm of UK insurer Aviva, has launched a tokenized share class of its Sterling Liquidity Fund on the XRP Ledger (XRPL). The launch was announced on Monday, October 26, 2026, and was developed with blockchain payments company Ripple. Aviva committed £50 million (roughly $66 million) of its own money to the new share class.

The move extends an existing arrangement. Aviva's first tokenized product, a share class of a US dollar liquidity fund, launched in July. With the new sterling class, Aviva's total investment across its two tokenized money market fund offerings now exceeds £86 million, or roughly $115 million.

The underlying Sterling Liquidity Fund was established in 2002. It is an Ireland-domiciled UCITS money market fund that invests in high-grade, sterling-denominated short-term debt instruments and offers daily liquidity. It manages about £22 billion (around $29.4 billion), which makes it Aviva Investors' largest portfolio.

The £22 billion figure is the size of the whole existing fund. It is not the amount that has been moved onto the blockchain. The tokenized portion is much smaller, and consists of the £50 million Aviva has invested in the new share class plus the earlier dollar class.

The structure uses what Aviva calls a digital twin model. Eligible investors can hold tokens in digital wallets that represent their shares in the fund. The actual securities stay off-chain, with the underlying assets held by BNY (Bank of New York Mellon). According to reporting on Aviva's announcement, tokenization does not change the fund's objectives, risk level, liquidity arrangements or regulatory protections.

Several other firms play supporting roles. Komainu provides digital-asset custody, and Licuido operates the tokenization platform. Ripple is also named as a backer of the launch.

The offering is aimed at institutional clients. The new sterling token class, called Class T, lists a minimum initial investment and minimum holding of £1 million, although the fund's directors can waive those thresholds.

Mark Versey, chief executive of Aviva Investors, said the firm believes tokenized funds can increase efficiency and ultimately lead to better client outcomes.

Cryptopolitan noted that tokens in Aviva's earlier structure could not be transferred between holders. That limits how readily they could be used as collateral that institutions move quickly. Aviva has not said whether the new sterling class will carry the same restriction.

The announcement also drew commentary about what it means for the XRP token. 24/7 Wall St. pointed out that Ripple's announcement did not name XRP as a settlement or payment asset, so any direct demand for the token from this fund is unclear. The same article noted that major asset managers such as BlackRock and Franklin Templeton already issue tokenized funds across several blockchains. Tokenization on the XRP Ledger is therefore one of several competing routes for traditional funds. This story does not point to any particular price outcome.

The launch is another example of a large traditional asset manager putting a regulated money market product on a public blockchain while keeping custody and legal ownership structures largely as they were. This article is for information only and is not financial, investment or tax advice.

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