Aviva Launches $1T Tokenized Fund on XRP Ledger with Ripple Partnership

Aviva Investors has launched its first tokenized investment product on the XRP Ledger (XRPL), in partnership with Ripple. The US Dollar Liquidity Fund is a regulated money market fund that has been tokenized, allowing it to trade on the blockchain while maintaining the same objective, liquidity, risk profile, and regulatory protections as the traditional share class.

The Central Bank of Ireland approved the regulated tokenized structure, marking a significant milestone in the institutional presence of blockchain-based money market funds. The launch also involves several institutional partners, including Ripple, which provides the blockchain infrastructure through XRPL, Komainu, which serves as the regulated digital asset custodian, and Licuido, which supplies the tokenization platform.

Ripple stated that the key factors that led to the choice of the XRP Ledger were its speed of settlement, low fees, and suitability for institutions. The company believes that regulated tokenized funds have the potential to make fund issuance, transfers, and administration more efficient while retaining investor protections in traditional finance.