Key Takeaways
- Aviva Investors has launched a tokenized share class of its £22 billion Sterling Liquidity Fund on the XRP Ledger, expanding its partnership with Ripple.
- Aviva invested £50 million ($66 million) in the new offering, bringing combined investments across its two tokenized fund share classes to more than £86 million.
- Ripple is also expanding its banking and custody operations, with CEO Brad Garlinghouse announcing final approval for Ripple National Trust Bank.
Ripple is expanding its presence in institutional finance as Aviva Investors launches a tokenized share class of its largest money market fund on the XRP Ledger (XRPL).
The Oct. 26 announcement brings blockchain-based access to Aviva’s Sterling (GBP) Liquidity Fund, which manages approximately £22 billion ($29.4 billion).
Aviva invested £50 million in the new share class, bringing the combined amount invested across its two tokenized money market fund offerings to more than £86 million ($116 million).
The launch follows the introduction of a tokenized share class for Aviva’s US dollar liquidity fund in July.
The £22 billion figure refers to the assets managed by the existing sterling fund. It does not mean the entire amount has been tokenized or that Aviva has purchased £22 billion worth of XRP.
Aviva Tokenizes £22B Sterling Fund With £50M Initial Investment
Aviva’s Sterling Liquidity Fund is an Ireland-domiciled UCITS money market fund established in 2002.
It invests in high-quality, sterling-denominated short-term debt instruments and offers daily liquidity.
Aviva is using a digital twin structure rather than creating an entirely new investment fund.
Under this arrangement, eligible investors can hold tokenized representations of fund shares on XRPL, while the underlying portfolio continues to operate under its existing investment and custody arrangements.
The fund’s investment objectives, risk profile, liquidity terms and regulatory protections remain unchanged.
For investors, the main change is how fund ownership can be recorded and accessed, rather than the assets held in the portfolio. The initial £50 million investment represents approximately 0.23% of the underlying £22 billion fund’s assets.
Across its sterling and US dollar tokenized share classes, Aviva now has more than £86 million invested, demonstrating that the initiative has moved beyond a single product launch.
However, the amount invested in tokenized shares remains relatively small compared with the size of Aviva’s conventional money market fund business.
Ripple Expands XRP Ledger’s Institutional Fund Business
Aviva’s latest launch builds on its partnership with Ripple, announced in February 2026.
The companies introduced their first tokenized share class in July, when Aviva brought its USD Liquidity Fund onto XRPL following approval from the Central Bank of Ireland.
With the addition of the sterling product, Aviva says it has become one of Europe’s largest providers of tokenized money market funds.
Several financial institutions support the products.
BNY Mellon remains the custodian of the underlying fund assets, Komainu provides digital asset custody services, and Licuido supplies the tokenization infrastructure.
Eligible investors can access the tokenized shares through digital wallets, while the fund’s underlying assets remain within the existing custody structure.
Aviva Investors CEO Mark Versey said the company expects tokenized funds to improve operational efficiency and client outcomes.
“We believe tokenised funds can increase efficiency and ultimately lead to improved client outcomes,” Versey said.
Ripple’s senior vice president of trading and markets, Nigel Khakoo, also highlighted the potential for continuous market access and faster settlement.
For Ripple, the Aviva partnership adds another regulated financial product to XRPL, giving the network a role in fund distribution rather than limiting its use to cryptocurrency transfers.
Ripple Secures US Trust Bank Approval as Institutional Business Expands
The Aviva launch comes as Ripple announces another development in its US banking operations.
On Oct. 26, Ripple said the Office of the Comptroller of the Currency (OCC) had granted final approval for Ripple National Trust Bank, following preliminary conditional approval in December 2025.
The federally supervised trust bank is authorized to manage segregated reserves backing Ripple USD (RLUSD), serve as collateral trustee for stablecoin holders, and, once operational, provide fiduciary digital-asset custody services to institutions.
RLUSD will continue to be issued by Standard Custody & Trust Company, Ripple’s New York-regulated subsidiary. The National Trust Bank adds federal supervision to Ripple’s existing regulatory arrangements.
Ripple said RLUSD has reached a market capitalization of approximately $2.5 billion, with BNY serving as its primary reserve custodian.
The trust bank will not operate like a conventional commercial bank. Its approved business focuses on custody and fiduciary services rather than accepting customer deposits or issuing loans.
Ripple has not announced when the bank will begin operations.
The approval and Aviva partnership concern different parts of Ripple’s business, but both expand its involvement with regulated financial institutions. Aviva is using XRPL to represent fund ownership, while Ripple National Trust Bank will provide infrastructure for stablecoin reserves and institutional custody.
Does Aviva’s £22B Fund Mean More Demand for XRP?
For XRP holders, the Aviva announcement adds another institutional use case for the XRP Ledger, though its direct impact on XRP demand remains uncertain.
XRPL provides the infrastructure to issue and manage the tokenized share class. The underlying investment remains a regulated sterling money market fund, not a cryptocurrency portfolio.
Putting fund shares on XRPL does not require investors to purchase an equivalent value of XRP.
XRP is used for network fees and certain account requirements, but Aviva has not disclosed how much XRP it or participating investors will hold. The announcement also does not indicate that the entire £22 billion fund will eventually be tokenized.
The confirmed investment is £50 million in the new sterling share class, bringing Aviva’s combined investments across its two tokenized offerings to more than £86 million.
Ripple’s banking approval creates another potential avenue for institutional adoption, but the national trust bank’s activities do not automatically generate demand for XRP either.
The figures worth watching are the amount of additional capital entering Aviva’s tokenized funds, transaction activity on XRPL, and the adoption of Ripple’s institutional custody and payment services.
For now, Ripple has achieved two institutional milestones in the same week: a £50 million investment in a tokenized fund on XRPL and final approval from a US trust bank supporting an RLUSD stablecoin business valued at approximately $2.5 billion.
Whether those developments translate into sustained demand for XRP will depend on how institutions use the network, not simply on the value of the assets associated with Ripple’s partners.
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Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.
Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.
