Aviva Debuts XRPL Tokenized Fund with Irish Approval

Summary

Aviva Investors, the asset management division of Aviva Plc based in London, has introduced a tokenized share class of its US Dollar Liquidity Fund on the XRP Ledger (XRPL), following approval from the Central Bank of Ireland. This new share class allows eligible investors holding digital wallets to access the fund through blockchain technology while maintaining traditional custody arrangements. The underlying assets of the fund remain with the custodian BNY Mellon, with Komainu providing digital asset custody and Licuido supplying the tokenization infrastructure.

The US Dollar Liquidity Fund focuses on investing in high-quality, short-term US dollar-denominated debt securities and money market instruments issued by governments, banks, and corporations. According to Aviva, the tokenized share class retains the same investment aims and liquidity features as the conventional, non-tokenized fund. This move builds on Aviva Investors’ earlier partnership with Ripple, whose XRP Ledger serves as the blockchain platform for issuing and managing the tokenized shares.

Why it matters

This development adds to a growing list of tokenized investment products on public blockchains, with XRPL previously hosting similar fund tokenizations such as Archax’s issuance of abrdn’s US Dollar Liquidity Fund in 2024. More broadly, major traditional asset managers like BlackRock, Franklin Templeton, and Apollo have also started launching tokenized funds as the interest in blockchain-based financial products rises. Cointelegraph notes the significance of these launches as part of the broader adoption of blockchain technology in regulated financial markets.