Key Points

• Aviva Tokenizes the shares of its £22 billion fund
• The new pound share class starts at 50 million pounds.
• The total fund investment on XRP Ledger has exceeded 86 million pounds.

Ripple helps Aviva Investors to launch the tokenized shares of its largest investment fund on XRP Ledger, extending this British asset management company's blockchain strategy to a £22 billion pound sterling money market investment portfolio.

This new product was launched with an investment of 50 million pounds, bringing the total holdings of the two tokenized share categories of Aviva to over 86 million pounds, which is approximately 116 million US dollars.

According to the announcement on October 26th from Ripple, this launch follows the first tokenized money market product introduced in July by Aviva. It marks the second real-money fund product of XRPL.

Aviva will tokenize XRP Ledger to its maximum fund size.

The new share category belongs to Aviva Investors Sterling Liquidity Fund, which is a UCITS money market fund registered in Ireland and established in 2002.

The traditional fund manages a scale of approximately 22 billion pounds and invests in high-quality, short-term debt instruments denominated in pounds, with the goal of providing relatively low-risk returns and daily liquidity.

Importantly, the entire £22 billion investment portfolio has not been transferred to XRP Ledger. Instead, investors have access to the tokenized representation of the existing fund shares.

Aviva has invested 50 million pounds in the new share category, and the combined scale of its tokenized products in pounds and dollars has now exceeded 86 million pounds.

This expansion is built upon the early Ripple collaboration announced by Aviva in February of this year, and it also continues with the launch of the first fund in July.

How do Ripple and BNY support the tokenization of Aviva?

Aviva adopts a digital twin structure, which means that the blockchain tokens represent holdings in existing regulated investment funds, rather than newly created cryptocurrencies.

The underlying assets are still held by BNY as the fund custodian. Komainu provides regulated digital asset custody services, while Licuido offers tokenization infrastructure.

Eligible investors can access these tokenized shares through digital wallets, while retaining the investment objectives, risk characteristics, liquidity features, and regulatory protections of traditional funds.

This model is similar to deployments by other institutions, including Brazil's CSD BR plan; this plan images existing securities records on XRPL, but it does not transfer the entire underlying market to blockchain infrastructure.

Ripple has also invested in companies, including Licuido, to develop a broader tokenization infrastructure for asset managers.

Aviva What does adopting the XRP Ledger expansion pair mean?

This launch also brings another mature financial institution into the continuously expanding real-world asset ecosystem of XRPL.

Earlier this month, Franklin Templeton issued an additional approximately 150 million US dollars in tokenized fund shares on XRPL, bringing its recorded holdings close to 200 million US dollars.

These two developments indicate that institutions' interest in investing in regulated money market funds on public blockchain infrastructure is on the rise.

However, the tokenization of Aviva does not mean that one has purchased XRP worth 86 million pounds, and the announcement did not create any direct positive price momentum for this cryptocurrency.

XRPL Transactions require the use of XRP to pay network fees, but these costs are relatively low.

The network has also supported tokenized treasury bond settlement trials involving Ripple, Mastercard, Ondo, and JPMorgan.