Aviva Investors has launched a tokenized share class for its £22 billion Sterling Liquidity Fund on the XRP Ledger, expanding a digital-fund program that began with a U.S. dollar liquidity product earlier this year. Financial News reported the October 26 launch and said the share class is available to eligible investors using digital wallets. The development moves one of Aviva's largest cash-management products onto blockchain-based ownership and servicing infrastructure without replacing the traditional fund or its underlying assets.

A digital share class, not a new investment strategy

Aviva's product materials describe tokenization as a new access layer around an existing liquidity strategy. The firm says the underlying fund, investment process and risk management remain unchanged, while investor holdings are issued and serviced through tokenized accounts on the XRP Ledger. That distinction matters: the blockchain record represents a share class in a conventional money-market fund rather than a standalone crypto asset or a claim on XRP. Aviva lists the Sterling Liquidity Fund among products designed for operational and strategic cash holdings, with portfolio reports and daily liquidity information still provided through its established fund-document framework.

Related reporting: Franklin Adds $150 Million of Fund Shares to XRP Ledger

Custody and infrastructure remain divided

Financial News said the launch was supported by institutional digital-asset custodian Komainu and tokenization platform Licuido, while BNY continues to hold the fund's assets as custodian. Eligible investors access their positions with digital wallets, but the structure separates the on-chain record and servicing tools from custody of the securities held by the fund. Aviva began working with Ripple in February to bring traditional fund structures to the XRP Ledger, then launched a tokenized share class for its U.S. Dollar Liquidity Fund in July. The asset manager told Financial News that more than £86 million is invested across the two tokenized share classes.

Why the Sterling launch matters

Money-market funds are becoming a practical test case for institutional tokenization because they combine regulated investment products with frequent subscriptions, redemptions and cash-management needs. Aviva says digital issuance can improve visibility and processing while supporting future uses such as collateral management and digital financial ecosystems. The Sterling product broadens the program from a dollar-denominated pilot to Aviva's largest mutual fund, giving the infrastructure a substantially larger established product base. It does not mean all £22 billion of fund assets have moved on-chain; the figure describes the overall fund, while the tokenized share class represents only the capital invested through that access route.

Access limits and investment risks still apply

The launch is aimed at eligible investors and is not universal retail distribution. Aviva's website says product availability varies by jurisdiction and directs professional clients to the relevant fund documentation. It also warns that a money-market fund is not a bank deposit or a guaranteed product: values can move with interest rates, inflation and issuer credit quality, and investors can lose principal. Tokenization may streamline ownership records and servicing, but it does not remove those portfolio risks or make the fund's underlying instruments continuously liquid. Operational questions also remain, including how wallet controls, transfer restrictions, identity checks and off-chain fund records are reconciled during stressed conditions. Adoption should therefore be measured by assets entering the tokenized share class and the efficiency of real investor transactions, not by the total size of the conventional fund alone.

Sources

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