Key Highlights
- Aviva Investors launched its first tokenized USD Liquidity Fund on the XRP Ledger in partnership with Ripple.
- The Central Bank of Ireland approved the tokenized share class, offering the same liquidity, risk profile, and investor protections as the traditional fund.
- The launch expands regulated tokenized fund offerings, though access remains limited to eligible investors with compatible digital wallets.
Aviva Investors, the global asset management arm of Aviva plc, has launched a tokenized share class of its US Dollar Liquidity Fund in partnership with blockchain firm Ripple. The new share class is available on the XRP Ledger and marks the first time Aviva Investors has tokenized one of its funds.
According to the official announcement, the fund, originally launched in traditional form in 2020, invests in high-grade US dollar short-term debt instruments. It targets low-risk returns and daily liquidity. Investors in the tokenized version receive the same investment objective, risk profile, liquidity characteristics, and regulatory safeguards as the conventional fund, while also gaining operational features made possible by blockchain technology.
Ireland’s central bank approves tokenized share class
The Central Bank of Ireland approved the tokenized share class, which Aviva described as a regulatory first for tokenized fund structures. Custody of the underlying assets remains with The Bank of New York Mellon. Komainu will provide regulated institutional digital-asset custody, while Licuido supplies the tokenization infrastructure. Eligible investors with digital wallets can access the new share class.
Mark Versey, CEO of Aviva Investors, said the launch represents the firm’s first step into fund tokenization. “Innovation has always been central to Aviva Investors’ heritage, and we believe that tokenization is a significant development within the investment industry. It is our view that this trend will increase efficiency and ultimately lead to improved client outcomes,” he said.
He added that the partnership with Ripple was instrumental in bringing the project to market and that the company plans to explore additional tokenized fund structures.
Meanwhile, Nigel Khakoo, Senior Vice President of Trading and Markets at Ripple, said, “The XRP Ledger was built for exactly this kind of application, and we expect this launch to set a strong precedent for other asset managers.”
How the tokenized fund works for investors
Eligible investors can now access Aviva Investors’ USD Liquidity Fund in tokenized form on the XRP Ledger. This means they receive the same low-risk investment objective, daily liquidity, risk profile, and full regulatory protections as the traditional share class while gaining the operational advantages of blockchain.
Access remains limited to eligible investors with compatible digital wallets under the framework approved by the Central Bank of Ireland.
Ripple and Aviva turn plans into reality
Earlier this year, in February 2026, Ripple and Aviva Investors announced a partnership aimed at bringing conventional investment funds onto the XRP Ledger.
According to Ripple, Aviva planned to trial tokenized fund structures to accelerate processes and reduce operational costs, taking advantage of the ledger’s rapid, low-fee transactions. Ripple executive Reece Merrick stated on X that the firm was “thrilled to announce that Ripple is partnering with Aviva Investors to bring traditional fund structures to the XRP Ledger.”
The initiative was designed to enable Aviva to digitize regulated fund offerings while continuing to operate within existing regulatory frameworks.
Limited access can be a major restriction
While the launch is presented as a regulatory milestone, practical adoption faces clear hurdles. Tokenized funds remain accessible only to eligible investors with digital wallets, limiting immediate scale.
Operational benefits such as faster settlement and lower costs are real in theory, yet the underlying assets and risk profile are unchanged, so the product does not create new return potential. Regulatory approval in Ireland does not automatically translate into broad acceptance across other jurisdictions.
The product also relies on multiple service providers for custody, tokenization, and infrastructure, adding operational dependencies typical of tokenized financial products.
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