Aviva Investors Tokenizes $29B Sterling Liquidity Fund on XRP Ledger

Aviva Investors has launched a tokenized share class of its £22 billion ($29.4 billion) Sterling Liquidity Fund on the XRP Ledger, according to a joint announcement from the insurer's asset management arm and Ripple on Monday.

The fund is Aviva Investors' largest, and the tokenized share class lets institutional buyers hold exposure in on-chain format. Aviva seeded the new share class with a £50 million investment from its own balance sheet, the announcement stated.

Why does a second tokenized fund matter?

This is the asset manager's second tokenized fund listing this year. In early July, Aviva expanded its USD Liquidity Fund to the XRP Ledger, making it an early mover among major European managers experimenting with on-chain fund distribution.

Aviva said the two tokenized share classes now hold roughly £86 million combined, which it claims positions the firm among Europe's largest providers of tokenized money market funds. The figure remains a fraction of the Sterling fund's total assets — under half of one percent — but the pace of deployment has accelerated within a single quarter.

The expansion sits inside a broader collaboration between Aviva and Ripple to bring more tokenized funds to the XRP Ledger. Ripple has positioned XRPL as infrastructure for institutional asset tokenization, and liquidity funds — with stable net asset value and short duration — are widely viewed as the lowest-friction entry point for traditional managers testing blockchain rails.

How large is the XRP Ledger's tokenized asset market?

The XRP Ledger ranks as the ninth-largest blockchain for tokenized real-world assets, holding $642 million in total distributed RWA value across roughly 2,900 unique holders, according to data from RWA.xyz. The holder count signals that participation remains concentrated among institutional wallets rather than retail distribution.

For context, the entire tokenized asset market across all chains runs well into the billions of dollars, with Ethereum-based protocols holding the majority of value. XRPL's $642 million base gives Aviva's two funds outsized weight on that network relative to their size in the traditional fund industry.

What are the operational consequences?

For Aviva, tokenized share classes offer faster settlement, programmable transfers and potential collateral mobility for institutional holders — operational improvements rather than portfolio changes. The funds themselves remain conventional sterling and dollar liquidity vehicles; only the transfer and record-keeping layer moves on-chain.

The move also deepens Ripple's institutional credentials at a moment when tokenization of funds, treasuries and money market instruments is drawing interest from BlackRock, Franklin Templeton and other major managers across multiple chains. Competition among blockchains for fund issuance is now measurable through RWA.xyz rankings, where XRPL sits behind larger Ethereum-compatible networks.

Aviva and Ripple have not disclosed which fund will tokenize next or a timeline for additional share classes. The collaboration's stated intent to bring more funds to XRPL suggests further listings will follow as the £86 million tokenized base scales toward the parent funds' conventional assets.