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- Aviva Investors launched a tokenized share class of its Sterling Liquidity Fund.
- Aviva invested £50 million into the newly introduced tokenized offering.
- Institutional investors must meet a £1 million minimum initial investment and holding.
Aviva Investors has launched a tokenized share class of its Sterling (GBP) Liquidity Fund on the XRP Ledger, with Aviva investing £50 million in the new offering.
The Oct. 26 launch extends the asset manager’s partnership with Ripple into a second currency, following a U.S. dollar share class introduced in July. More than £86 million is now invested across the two tokenized offerings. Mark Versey, chief executive of Aviva Investors, said:
“[…] We believe tokenised funds can increase efficiency and ultimately lead to improved client outcomes.”
The £50 million investment is in a new share class of the existing £22 billion sterling fund, Aviva Investors’ largest portfolio.
Institutional Investors Face a £1 Million Minimum
The sterling token class, Class T, lists a £1 million initial investment and minimum holding. Directors can waive those thresholds.
Access requires eligible institutional status as a professional client under European MiFID II rules or an equivalent classification. Investors must open accounts with the digital custodian and tokenization platform, complete administrator onboarding and pass identity, anti-money-laundering and sanctions checks.
Komainu provides digital-asset custody, while Licuido operates the tokenization platform. The Bank of New York Mellon, known as BNY, holds the fund’s underlying assets.
Sterling Portfolio Retains Its Money Market Strategy
The sterling fund launched in 2002 and is an Ireland-domiciled money market fund operating under the European UCITS framework. Investors in the tokenized class retain the conventional fund’s investment objective, risk profile, liquidity characteristics and regulatory protections.
The actively managed portfolio aims to preserve capital and deliver returns in line with money market rates. Its benchmark is the Sterling Overnight Index Average, known as SONIA.
Holdings normally include term deposits and cash-like instruments issued by governments, international bodies, banks, and companies. The portfolio’s weighted average maturity cannot exceed 60 days.
Investments denominated in currencies other than sterling are hedged against exchange-rate movements. The investment manager uses credit and interest-rate analysis to select securities and assemble a liquid portfolio while seeking to maximize yields. Issuers can come from markets worldwide, although holdings are typically priced in sterling.
The new class follows the July 29 launch of Aviva Investors’ tokenized U.S. dollar liquidity share class with Ripple. That earlier class received Central Bank of Ireland approval.
Digital Tokens Follow the Fund’s Share Register
The digital-twin structure represents investors’ holdings on the XRP Ledger while the existing fund operates off-chain. Investors hold an interest in the sterling debt portfolio through the new class.
The administrator’s share register determines legal ownership. Blockchain balances are reconciled with it daily, and the register takes precedence if records differ.
Purchases and redemptions go through the administrator. Tokens are created after shares are issued and subscription money arrives. Investors cannot initiate purchases or redemptions through the tokenization platform.
Investors cannot freely transfer the shares or tokens under the current model; share transfers require director consent. The manager or platform provider covers blockchain transaction fees, so investors do not need to buy XRP.
