Aviva Investors has launched a tokenized share class of its Sterling (GBP) Liquidity Fund on the XRP Ledger, expanding its blockchain-based investment offering with a fund that holds approximately £22 billion in assets.Announced on October 26 in partnership with Ripple, the launch marks the asset manager’s second tokenized fund offering, following the introduction of a tokenized share class for its USD Liquidity Fund in July 2026. Aviva Investors has more than £86 million ($116 million) invested across the two tokenized share classes, including £50 million ($66 million) in the new sterling-denominated offering.The launch adds to growing institutional interest in tokenizing traditional money market funds. In August, BlackRock introduced tokenized share classes for selected European money market funds on Ethereum, covering products denominated in sterling, euros and US dollars.
Fund Maintains Its Existing Investment Structure
The Sterling Liquidity Fund uses a digital twin model that represents fund holdings on the blockchain while preserving the existing off-chain fund structure. The Ireland-domiciled UCITS money market fund retains the same investment objective, risk profile, liquidity characteristics and regulatory protections as its conventional counterpart, which launched in 2002.The fund targets low-risk returns and daily liquidity through exposure to high-grade, sterling-denominated short-term debt instruments. Eligible investors can access the tokenized share class through digital wallets, while The Bank of New York Mellon holds the fund’s assets as custodian.Komainu, a regulated institutional digital asset custodian, and Licuido, a digital infrastructure platform for tokenizing and trading real-world assets, supported the launch alongside Ripple. Aviva Investors CEO Mark Versey said the launch demonstrates the firm’s intention to expand its tokenization capabilities and that tokenized funds could improve operational efficiency and client outcomes.
“This expansion of our tokenised offering shows our clear intent to be a leader in this area and sets the groundwork for a future expansion of our capabilities. We believe tokenised funds can increase efficiency and ultimately lead to improved client outcomes.“
The move also follows earlier efforts to bring sterling money market funds onto distributed ledger technology. In June 2023, digital asset firm Archax created a tokenized representation of interests in abrdn’s Aberdeen Standard Liquidity Fund (Lux) Sterling Fund using Hedera Hashgraph, marking an early step in bringing conventional fund interests onto blockchain infrastructure.
Investor Takeaway
Aviva Investors has launched a tokenized share class of its Sterling Liquidity Fund on XRP Ledger, backed by a £50 million investment. The fund retains its existing investment strategy, risk profile, daily liquidity and regulatory protections.
Institutional Demand Drives Tokenized Cash Funds
Asset managers are increasingly exploring blockchain-based fund shares to improve how investors access and transfer traditional financial products without changing the underlying investment structure.In February 2026, BNP Paribas Asset Management issued a tokenized share class of a French-domiciled money market fund on Ethereum. The firm used a permissioned access model that restricted holdings and transfers to authorized participants while testing blockchain-based issuance and fund administration processes.The market has also attracted new investment as providers expand tokenized cash products across currencies. Spiko raised $90 million in a Series B funding round in October 2026 as its tokenized cash funds reached $2.7 billion in assets under management across products denominated in euros, dollars, sterling and Swiss francs. The company plans to use the funding to launch additional funds and enter new markets.
Investor Takeaway
Tokenized money market funds continue to attract institutional interest, with BNP Paribas testing blockchain-based fund shares on Ethereum and Spiko raising $90 million as its tokenized cash funds reached $2.7 billion in assets under management.
