Skip to the article
Onchain Brief

News from across crypto

Aviva puts £22bn sterling fund share class on XRP Ledger

Aviva Investors and Ripple have launched a tokenized share class of a £22 billion sterling fund on the XRP Ledger, with £50 million invested in it.

The Onchain Brief Editors2 min read
Aviva puts £22bn sterling fund share class on XRP Ledger

Aviva Investors and Ripple launched a tokenized share class of Aviva’s £22 billion Sterling Liquidity Fund on the XRP Ledger on 26 October. A tokenized share class represents fund units digitally on a blockchain. Aviva has invested £50 million in the new class, according to the Aviva Investors announcement.

The fund is the asset manager’s largest. The Block puts its value at about $29.4 billion. This is Aviva’s second tokenized fund share class, after a US dollar liquidity fund launched in July.

What does the token represent?

It represents holdings in the existing fund on the XRP Ledger, a public blockchain. Aviva says the fund itself keeps its existing off-chain structure. It is an Ireland-domiciled money market fund, a type of fund that invests in short-term debt.

The fund invests in high-grade, sterling-denominated short-term debt and aims to provide daily liquidity. Aviva says investors in the tokenized class have the same investment objective, risk profile, liquidity features and regulatory protections as investors in its conventional fund.

Who holds the assets, and who can invest?

Eligible investors with digital wallets can access the new share class. The fund’s assets are held by the Bank of New York Mellon. Digital asset custodian Komainu and infrastructure provider Licuido also supported the launch, Aviva said.

Aviva has invested £50 million in the sterling share class. Across this and its earlier US dollar tokenized share class, more than £86 million is invested, according to the company. The figure describes investment in the two tokenized classes, not the size of the underlying sterling fund.

How is this different from buying the regular fund?

The digital record of the holdings sits on the XRP Ledger, while the fund continues to run off-chain. The Block’s report on the launch also says BNY Mellon holds the underlying assets and describes the arrangement as a “digital twin” model.

Aviva says the new class is designed to work within existing regulatory frameworks. The announcement does not say how many outside investors have joined, or detail whether and how investors can transfer the tokens. The company describes the launch as an expansion of its tokenized fund offering, following the US dollar class in July.

References