Aviva Investors, the London-based asset management arm of Aviva Plc — one of the United Kingdom's largest insurers with hundreds of billions of pounds in assets under management — has launched a tokenized share class of its US Dollar Liquidity Fund on the XRP Ledger (XRPL) after receiving approval from the Central Bank of Ireland. Ireland is one of Europe's leading fund domiciles, particularly for UCITS-structured products, and regulatory sign-off from its central bank signals that established European authorities are engaging directly with blockchain-based fund distribution. The move marks another step in the expansion of tokenized real-world assets (RWAs), a sector that has seen growing institutional adoption as financial firms explore blockchain technology for fund issuance and management.

According to the company's announcement, the tokenized share class will be available to eligible investors with digital wallets. The fund's underlying assets will continue to be held by custodian BNY Mellon, while Komainu will provide digital asset custody and Licuido will supply the tokenization infrastructure. The structure preserves the conventional fund's traditional custody and administrative backbone while layering blockchain-based record-keeping on top — a hybrid model that has become common among regulated asset managers entering the tokenization space.

The US Dollar Liquidity Fund invests in high-grade, short-term US dollar-denominated debt securities and money market instruments issued by governments, banks, and corporations. According to Aviva, the tokenized share class offers the same investment objective and liquidity profile as the conventional fund. Liquidity and money market funds have emerged as a primary entry point for institutional tokenization efforts, as their stable net asset values and frequent subscription and redemption activity make them well suited to testing blockchain-based settlement and transfer mechanics.

The launch follows Aviva Investors' partnership with Ripple, announced earlier this year. Ripple's XRP Ledger, a public blockchain that has been in continuous operation since 2012, provides the infrastructure for issuing and managing the tokenized shares. XRPL is known for its fast settlement times and low transaction costs.

Tokenization of real-world assets involves representing ownership of financial instruments on a blockchain, enabling potential improvements in settlement efficiency, transparency, and accessibility. The tokenized RWA market has grown significantly, with institutions across traditional finance and digital assets participating.

Aviva's fund joins a growing list of tokenized investment products on public blockchains. On XRPL specifically, it follows Archax's tokenization of UK asset manager abrdn's US Dollar Liquidity Fund in 2024. More broadly, traditional asset managers including BlackRock, Franklin Templeton, and Apollo have also launched tokenized funds as demand for blockchain-based financial products continues to expand. Franklin Templeton has been a notable pioneer with its BENJI tokenization efforts, while Apollo launched a tokenized private credit fund on a public blockchain.