Aviva Investors, a major UK asset manager with £22 billion ($29 billion) in its flagship Sterling Liquidity Fund, has introduced a tokenized share class for this fund using Ripple’s decentralized XRP Ledger (XRPL) blockchain. This move marks an early step into blockchain-based finance for the traditionally conservative institutional sector in London.
Modest Pilot, Major Precedent
The current on-chain share class received an initial allocation of £50 million ($66 million). Including a dollar-denominated pilot in July, Aviva’s total digital asset holdings via tokenization in Europe now surpass £86 million ($116 million). These figures represent only about 0.4% of the Sterling Liquidity Fund’s overall assets, underlining a cautious approach rather than wholesale migration to blockchain infrastructure.
Aviva Investors CEO Mark Versey highlighted that the company’s push into Web3 aims to streamline operations. He expressed confidence that tokenization can optimize procedures and, in his words, “lead to improved client outcomes.”
By launching this small fraction of its fund on XRPL, Aviva Investors sets a precedent for large-scale institutional participation in blockchain networks, opening XRP-based infrastructure to market participants managing tens of billions in assets.
“Digital Twin” Structure Preserves Traditional Controls
Rather than overhaul the fund’s existing legal or operational framework, Aviva utilized a “Digital Twin” model. The newly tokenized tranche mirrors the established fund structure, which has functioned consistently since 2002. The blockchain acts primarily to register ownership rights with speed and cost efficiency, while underlying assets and regulatory safeguards remain in traditional custody.
Physical assets remain securely managed by BNY Mellon in the US. Komainu, a digital asset custodian regulated in multiple jurisdictions, ensures wallet security. Licuido, a platform specializing in digital asset tokenization, handles the technical aspects of converting fund shares into blockchain-based tokens.
Mini dictionary: Komainu is a custodian focused on safeguarding digital assets and operates under strict regulatory oversight. Licuido is a fintech platform that facilitates the tokenization and management of digitized assets for institutions.
Institutional Entry, Not for Retail
Participation in the tokenized share class is limited strictly to institutional investors who have completed comprehensive Know Your Customer (KYC) checks. Retail investors do not have access to this offering.
Aviva’s initiative comes amid broader efforts within traditional finance to create 24/7 settlement rails and move beyond legacy banking infrastructure.
Institutions are choosing XRPL to carry out fully regulated asset management operations. This development demonstrates how professional fund managers are abiding by compliance requirements while gradually bringing significant liquidity to the network.
For the XRP Ledger and Ripple, the collaboration with Aviva Investors represents a tangible milestone in attracting regulated institutional capital. While current allocations remain limited, the structure and compliance foundation could enable larger portions of Aviva’s $29 billion fund to move on-chain in the future.
| Fund Size | Total Tokenized | Tokenized Share (%) |
|---|---|---|
| $29 billion | $116 million | 0.4% |
