Aviva Investors has taken a major step by launching a tokenized share class for its US Dollar Liquidity Fund on the XRP Ledger. This move turns its partnership with Ripple into a live product after months of development and regulatory approval.
The Ireland-based fund, which originally debuted in 2020 as a traditional UCITS money market fund, now offers eligible investors the ability to buy shares through digital wallets rather than conventional means. This new share class received the green light from the Central Bank of Ireland, allowing it to operate within the fund’s existing regulated framework.
The fund itself focuses on low-risk, short-term debt instruments denominated in US dollars, aiming for steady returns with daily liquidity. While the blockchain records investor holdings, BNY Mellon continues to hold the underlying assets, maintaining a strict separation between the digital token and the actual securities. This “digital twin” model ensures investors enjoy the same risk profile, liquidity, and regulatory protections as with the traditional fund shares.
Supporting the tokenization process were Komainu, a regulated digital asset custodian, and Licuido, which provided the technological infrastructure to enable share management on the XRP Ledger without moving the underlying securities onto the blockchain.
Mark Versey, Aviva Investors’ CEO, framed this launch as an initial foray into tokenized funds, anticipating that such innovations will boost efficiency and improve outcomes for clients. The XRP Ledger now hosts around $4.37 billion in real-world assets represented on-chain, underscoring the growing institutional interest in blockchain-based fund structures.
Similar tokenization efforts by other financial players highlight how digital assets are reshaping traditional finance.
After the announcement, XRP’s price barely moved, reflecting cautious market sentiment toward this type of institutional blockchain adoption.
This content is for informational purposes only and does not constitute financial advice.
