Aviva Tokenizes a £22B Money Market Fund’s Sterling Share Class on XRP Ledger

Aviva Investors has launched a tokenized share class of its Sterling Liquidity Fund on the XRP Ledger, extending the use of blockchain records for a major traditional money-market product. The firm says its new class starts with a £50 million investment while the underlying Sterling fund has approximately £22 billion in assets under management.

The October 26 announcement describes Aviva’s second tokenized money-market share class, following a USD-denominated product earlier in 2026. Across the two digital share classes, the company reports more than £86 million invested. The larger £22 billion figure describes the overall Sterling Liquidity Fund, not the value of tokens already issued on XRP Ledger.

That distinction matters because tokenization headlines often imply a fund’s full balance has moved onto blockchain infrastructure when only a new ownership-access layer or share class is represented digitally.

A digital twin rather than a replacement for the fund

Aviva says it uses a “digital twin” structure: a tokenized representation of a conventional fund share class, while the original offchain portfolio, legal framework and servicing arrangements remain intact. The structure is designed to preserve the investment objective, risk profile and liquidity characteristics of the underlying Ireland-domiciled UCITS money-market fund.

The underlying assets remain with the fund custodian, BNY, rather than becoming unregulated tokens directly controlled by anyone with an XRP Ledger wallet. The program also involves institutional digital-asset custodian Komainu and tokenization infrastructure provider Licuido.

Investors still need to meet eligibility and compliance requirements. A blockchain record can make certain ownership updates more efficient, but it does not by itself confer unrestricted global trading, instant redemption or the absence of fund-level fees.

The Sterling Liquidity Fund targets low-risk returns and daily liquidity through exposure to high-grade short-term sterling debt instruments. Low risk is not equivalent to a risk-free or government-insured bank deposit; investors remain exposed to the fund’s documented risks.

What the launch demonstrates

The tokenized class is more than a hypothetical pilot because Aviva says a defined amount has already been invested. But the market’s broader significance will depend on whether outside eligible investors adopt the class, whether the tokenized route reduces settlement or administrative expense, and how redemption works under pressure.

For institutions, a meaningful test is whether tokenized fund interests can be used efficiently as collateral while preserving enforceable ownership and transfer restrictions. A programmable record is only one component of that model; custodians, registrars and legal agreements determine much of the outcome.

Investors should also distinguish Aviva’s money-market share class from a stablecoin. Both may be used in cash-like workflows, but a fund unit represents an interest in an investment portfolio, not a token whose issuer promises one-dollar redemption. Fund net asset value and eligible redemption rules apply.

The launch expands the range of regulated products represented on public blockchain infrastructure, without implying that traditional funds have abandoned their established protections or that the entire £22 billion portfolio now sits on XRP Ledger.

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