Aviva Investors has launched a tokenized share class of its USD Liquidity Fund on the XRP Ledger, working with Ripple. It is the first tokenization of an Aviva Investors fund, cleared by the Central Bank of Ireland, with BNY Mellon holding the underlying assets.
Aviva Investors has launched a tokenized share class of its USD Liquidity Fund on the XRP Ledger, in partnership with the crypto firm Ripple. The UK asset manager announced the launch in a press release, which called it the first tokenisation of an Aviva Investors fund and tied it to the partnership the two firms announced early in the year.
Ripple partnered with Aviva Investors earlier this year to advance tokenization on the XRP Ledger (XRPL), notably its first partnership with a European investment firm to tokenize real-world assets at scale. Crypto custodian Komainu and digital platform company Licuido both supported the launch of the tokenized share class.
The fund targets low-risk returns and daily liquidity by offering investors exposure to high-grade US dollar-denominated short-term debt instruments. Aviva Investors said the new share class will be available to eligible investors with digital wallets.
BNY Mellon, the fund's custodian, will hold the assets for the tokenized shares. The asset manager also received approval from the Central Bank of Ireland for the launch.
According to Aviva Investors, the structure was designed to operate within existing regulatory frameworks, providing "a scalable foundation for future innovation in fund distribution and market infrastructure".
The XRP Ledger continues to see increased tokenization activity. RWA.xyz data shows the total tokenized value on the network currently stands at just over $4.3 billion.
Coincidentally, the fund launch comes as the Ripple-backed XRP Ledger fix amendment going live. The network's developers have continued to push upgrades in a bid to boost institutional adoption, and RWA holders on the ledger are up over 17% in the last month.
Sources: Aviva Investors, CoinGape
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