Aviva Investors has launched a tokenized version of a US dollar liquidity fund on the XRP Ledger, after securing approval from the Central Bank of Ireland. The fund gives eligible investors blockchain-based access to a regulated money market product while keeping the underlying assets in traditional custody. It's one of the first tokenized funds to go live under Ireland's regulatory framework.
How the fund works
The tokenized fund is built on the XRP Ledger (XRPL), a decentralized blockchain. Investors receive tokens representing shares in the fund, which itself invests in short-term US dollar instruments. The fund's assets remain in a conventional custody arrangement — the tokenization layer sits on top, not replacing the existing safekeeping structure. Aviva Investors says the setup is designed for institutional clients who want the efficiency of blockchain settlement without sacrificing the protections of a regulated fund.
Why Ireland
Ireland's Central Bank has been active in approving digital asset-related products. The regulator gave the green light for this fund after a review process that included assessing the tokenization model, custody, and investor protections. For Aviva, Ireland offers a well-established funds industry and a regulator that has shown willingness to engage with tokenization proposals. The move could encourage other asset managers to bring tokenized products to market through Dublin.
The fund is now available to eligible investors. Aviva hasn't disclosed a target size or a list of initial buyers. The next concrete step will be seeing whether other managers follow with similar products on XRPL or other chains. For now, the launch marks a real-world test of how a traditional asset manager can use a public blockchain for a regulated fund — without cutting corners on custody or compliance.
