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Aviva Investors launches tokenized fund on XRP Ledger after Ireland approval

Created at 30 Jul · 5:51 PM1 source↑ Market-relevant
IN SHORT

Aviva Investors has launched a tokenized share class of its US Dollar Liquidity Fund on the XRP Ledger, following approval from the Central Bank of Ireland. The fund offers blockchain-based access to traditional assets for eligible investors.

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Key Numbers

2024Archax tokenized abrdn's fund on XRPL

Who's Involved

Aviva Investors
Launched tokenized share class of US Dollar Liquidity Fund
Central Bank of Ireland
Approved the tokenized fund
BNY Mellon
Custodian for the fund's underlying assets
Komainu
Provider of digital asset custody
Licuido
Supplier of tokenization infrastructure
Ripple
Provided XRP Ledger blockchain infrastructure
Archax
Previously tokenized abrdn's fund on XRPL
abrdn
US Dollar Liquidity Fund tokenized by Archax

↳ Why This Matters

The launch of tokenized funds by established asset managers like Aviva Investors, backed by regulatory approval, signals increasing institutional adoption of blockchain technology for traditional financial products, potentially enhancing accessibility and efficiency in financial markets.

Key facts

  • Aviva Investors launched a tokenized share class of its US Dollar Liquidity Fund.
  • The fund is built on the XRP Ledger (XRPL) and has received approval from the Central Bank of Ireland.
  • Eligible investors with digital wallets can access the tokenized fund.
  • BNY Mellon remains the custodian for the fund's underlying assets.
  • Komainu will provide digital asset custody, and Licuido will supply tokenization infrastructure.

Aviva Investors, the asset management arm of Aviva Plc, has launched a tokenized share class of its US Dollar Liquidity Fund on the XRP Ledger (XRPL) after securing approval from the Central Bank of Ireland. This move signifies a growing trend in tokenized real-world assets.

The new share class will be accessible to eligible investors who possess digital wallets. While the fund's underlying assets will continue to be held by custodian BNY Mellon, Komainu will manage digital asset custody, and Licuido will provide the necessary tokenization infrastructure. The US Dollar Liquidity Fund itself invests in high-grade, short-term US dollar-denominated debt securities and money market instruments.

Aviva Investors announced that the tokenized share class maintains the same investment objectives and liquidity profile as the conventional fund. This initiative follows Aviva Investors' earlier partnership with Ripple, whose XRP Ledger serves as the blockchain infrastructure for issuing and managing these tokenized shares. The launch positions Aviva's fund alongside other tokenized products on public blockchains, including Archax's tokenization of abrdn's US Dollar Liquidity Fund on XRPL, and broader efforts by asset managers like BlackRock, Franklin Templeton, and Apollo in the tokenized asset space.

Frequently asked questions

The XRP Ledger (XRPL) is a decentralized, public blockchain technology that provides the infrastructure for issuing and managing tokenized shares, as utilized by Aviva Investors.

Key partners include Aviva Investors (the issuer), the Central Bank of Ireland (regulator), BNY Mellon (traditional custodian), Komainu (digital asset custodian), Licuido (tokenization infrastructure provider), and Ripple (XRPL provider).

The fund invests in high-grade, short-term US dollar-denominated debt securities and money market instruments issued by governments, banks, and corporations.

What Happens Next

01Eligible investors with digital wallets can now access the tokenized share class.
02Further expansion of tokenized real-world assets is anticipated from traditional asset managers.

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Cadence

How It Developed

Aviva Investors received approval from the Central Bank of Ireland for a tokenized share class.
The company launched a tokenized share class of its US Dollar Liquidity Fund on the XRP Ledger.
The tokenized fund is available to eligible investors with digital wallets.
BNY Mellon will continue to hold the fund's underlying assets, with Komainu providing digital asset custody.
Licuido will supply the tokenization infrastructure for the fund.
Aviva Investors partnered with Ripple for the XRP Ledger blockchain infrastructure.
The fund joins other tokenized investment products on public blockchains, including Archax's tokenization of abrdn's fund.

Sources

T1
Aviva Investors launches tokenized fund after Central Bank of Ireland approvalThe new XRPL-based share class gives eligible investors blockchain-based access to a regulated US dollar liquidity fund while keeping traditional custody arrangements.Cointelegraph

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