Aviva Investors has launched a tokenized share class of its U.S. dollar liquidity fund on the XRP Ledger. The Central Bank of Ireland approved the move, making it the asset manager's first tokenized fund on that blockchain. Ripple collaborated with Aviva to bring the fund to the ledger.
Why the XRP Ledger
The fund targets institutional investors. Ripple's involvement points to an enterprise-grade blockchain infrastructure. The XRP Ledger is known for fast settlement and low transaction costs, which can be attractive for money market funds that need to process subscriptions and redemptions quickly.
What the tokenized share class offers
The fund is a U.S. dollar liquidity fund. Tokenizing a share class means institutional investors can hold a traditional money market fund in digital form on a blockchain. That could allow for near-instant settlement and 24/7 trading, though the fund remains subject to regulatory oversight. Aviva Investors did not disclose the size of the tokenized share class or the number of investors expected to use it.
Regulatory green light
The Central Bank of Ireland's approval is a key step for regulated tokenized funds in Europe. It signals that authorities are willing to allow traditional fund structures to operate on public blockchains, provided they meet existing rules. Aviva Investors is regulated in Ireland, and the fund complies with local requirements.
The fund is now live for institutional investors. Aviva Investors has not announced plans for additional tokenized funds on the XRP Ledger. Whether other asset managers will follow its lead onto the blockchain remains an open question.
