Aviva Investors has launched a tokenized money market fund on the XRP Ledger, marking a rare foray by a major asset manager into blockchain-based finance. The fund, built in partnership with Ripple, aims to bring greater efficiency to a corner of the market that has long relied on manual processes and slow settlement.
A new kind of fund
Money market funds typically invest in short-term, low-risk assets like Treasury bills and commercial paper. By tokenizing the fund on the XRP Ledger, Aviva Investors is effectively turning shares into digital tokens that can be traded or transferred more quickly. The company says the move will reduce settlement times and cut operational costs — two pain points that have kept many traditional firms from embracing digital assets.
The fund is not a cryptocurrency. It's a regulated money market fund that happens to use a blockchain for record-keeping and transactions. That distinction matters: it means investors get the speed of crypto without the volatility.
Why the XRP Ledger
Ripple's XRP Ledger is a decentralized blockchain known for fast, low-cost transactions. Aviva Investors chose it over other networks, the firms said, because of its ability to handle high volumes and its built-in decentralized exchange. That allows the tokenized fund to be traded peer-to-peer without going through a traditional broker or exchange.
The partnership is not Ripple's first with a traditional finance firm. But it's one of the most direct: Aviva Investors is not just experimenting with the technology — it's putting a live product on the ledger.
What this means for traditional finance
The launch signals a shift. For years, asset managers have watched from the sidelines as crypto markets grew. Tokenized money market funds offer a way in without the risk of holding volatile coins. Aviva Investors is betting that institutional clients will want the efficiency gains — faster settlement, lower fees, 24/7 trading — that blockchains can provide.
Other firms are watching. BlackRock and Franklin Templeton have also launched tokenized funds, but on different blockchains. Aviva's choice of the XRP Ledger adds a new competitor to that space. The fund is now available to qualified investors, though the firms did not disclose how much capital it has raised so far.
