Aviva Investors has introduced a tokenized share class for its USD Liquidity Fund on the XRP Ledger, marking a milestone in combining traditional finance and blockchain. The new digital fund received regulatory approval from the Central Bank of Ireland and offers eligible investors a way to access fund shares via digital wallets without altering the fund’s original investment goals, liquidity, or risk profile.
This innovation converts Aviva’s 2020-launched fund into a blockchain-based asset backed by the same high-grade, short-term US dollar debt but tokenized to appeal to digital investors. Ripple supports the initiative by powering the token issuance and administration on its XRP Ledger, known for over four billion transactions processed since 2012 and hosting more than eight million active wallets.
BNY Mellon retains custody of the underlying assets, ensuring traditional trust alongside blockchain transparency. Meanwhile, regulated institutional custody is handled by Komainu, and Licuido provides the technical infrastructure that enables the fund's tokenization. This collaboration builds on the strategic partnership formed between Aviva and Ripple earlier this year, aiming to incorporate more tokenized solutions into Aviva’s product lineup.
Aviva’s CEO, Mark Versey, emphasized Ripple’s key role in launching this regulated product, pointing to the network’s speed and cost efficiency as key benefits. The launch also highlights how regulated financial institutions can operate within existing legal frameworks while tapping into blockchain’s potential.
