Bitcoin ETF

Dollar

Slice

Franklin

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 <p style="margin: 0 0 10px; font-weight: bold; letter-spacing: 0.03em;">Key Takeaways</p>
 <ul style="margin: 0; padding-left: 20px;">
  <li style="margin-bottom: 6px;">Tokenized classes hold £86M, not £22B</li>
  <li style="margin-bottom: 6px;">Sterling class follows July’s dollar launch on XRPL</li>
  <li style="margin-bottom: 6px;">Aviva pitches transferability; holders must still pass KYC</li>
  <li>Fund subscriptions are not XRP purchases</li>
 </ul>
</div>
<p><a href="https://www.fnlondon.com/articles/aviva-investors-steps-up-digital-assets-push-by-tokenising-largest-fund-f2d6dfee" rel="noopener noreferrer nofollow">Financial News reported on October 26</a> that Aviva’s two tokenized share classes, sterling and dollar, now hold more than £86 million combined. Even counted together, that is under 0.4% of the sterling fund’s size on its own.</p>
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 <div style="flex: 1 1 160px; padding: 14px 16px; border: 1px solid rgba(13,148,136,0.45); border-radius: 6px;">
  <p style="margin: 0; font-size: 1.6em; font-weight: bold; color: #0d9488;">£22B</p>
  <p style="margin: 4px 0 0; font-size: 0.9em;">Sterling Liquidity Fund, all share classes</p>
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  <p style="margin: 0; font-size: 1.6em; font-weight: bold; color: #0d9488;">£86M+</p>
  <p style="margin: 4px 0 0; font-size: 0.9em;">Both tokenized classes combined</p>
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  <p style="margin: 0; font-size: 1.6em; font-weight: bold; color: #0d9488;">July 29</p>
  <p style="margin: 4px 0 0; font-size: 0.9em;">Dollar class goes live on XRPL</p>
 </div>
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<h2 id="why-aviva-added-a-sterling-class">Why Aviva added a sterling class</h2>
<p>Aviva’s <a href="https://www.avivainvestors.com/en-gb/about/company-news/2026/07/aviva-investors-launches-tokenised-share-class-for-usd-liquidity-fund/" rel="noopener noreferrer nofollow">first tokenized share class, launched on July 29</a>, put shares of its US Dollar Liquidity Fund on XRPL after approval from the Central Bank of Ireland. A share class is a separate line of shares in the same fund, in this case one recorded on a blockchain. The fund itself invests in short-term, high-grade dollar debt.</p>
<p>That product only suited investors who wanted dollars. A UK treasury team holding pounds for payroll or supplier bills would take on exchange-rate risk by parking the cash in a dollar fund, and an investor holding dollar stablecoins would pay conversion costs to move into sterling. A sterling class lets pound-based cash stay in pounds.</p>
<p>Aviva’s case for adding more tokenized classes is about distribution. In an <a href="https://www.avivainvestors.com/en-ca/views/aiq-investment-thinking/2026/10/the-transformation-of-money-market-funds/" rel="noopener noreferrer nofollow">October 20 piece on money market funds</a>, it argued that yields across competing funds sit within a few basis points of each other, so platform experience, system integration and transparency increasingly decide where institutional cash goes.</p>
<blockquote style="margin: 24px 0; padding: 6px 0 6px 20px; border-left: 4px solid #0d9488; font-size: 1.15em; font-style: italic;">
 <p style="margin: 0;">“Platform access is now almost as important as the fund itself.”</p>
 <p style="margin: 8px 0 0; font-size: 0.8em; font-style: normal;">Aviva Investors, October 20</p>
</blockquote>
<h2 id="how-the-tokens-are-held">How the tokens are held</h2>
<p>The dollar class set the template. Aviva said BNY Mellon holds the fund’s assets as custodian, Komainu provides regulated custody on the digital side and Licuido supplies the tokenization technology.</p>
<p>Komainu has described it as a <a href="https://komainu.com/insights/komainu-selected-by-aviva-investors-to-support-first-tokenized-fund-share-class/" rel="noopener noreferrer nofollow">digital-twin model</a>: each token mirrors a share in the existing fund, whose structure and investor protections stay in place. Komainu guards the keys that control the tokens, while BNY Mellon holds the short-term debt the fund actually owns.</p>
<h2 id="what-the-tokens-can-do-so-far">What the tokens can do so far</h2>
<p>The £86 million figure is a small fraction of the money sitting in Aviva’s conventional share classes, and it does not show how many investors are behind it. Franklin Templeton’s experience is a reminder of why that matters: its <a href="https://coindoo.com/xrp-ledger-franklin-templeton-one-wallet/" rel="noopener noreferrer nofollow">XRPL fund shares turned out to sit largely in one wallet</a>.</p>
<p>Aviva’s October piece names transferability as the main benefit of tokenized money market funds, alongside round-the-clock trading and near-instant settlement. That list describes tokenized funds in general rather than the terms of Aviva’s own classes. The July release limits the dollar class to eligible investors with digital wallets, the same October piece notes that new clients face full know-your-customer and anti-money-laundering checks, and Structured Retail Products reported after the launch that the dollar tokens are not freely transferable.</p>
<p>Turning tokens back into cash also runs through the conventional fund. Aviva’s piece notes that money market funds of this type process subscriptions and redemptions on dealing days with daily cut-offs, and the digital-twin model keeps the existing fund register as the record the tokens mirror.</p>
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</div>
<h2 id="what-it-means-for-xrp">What it means for XRP</h2>
<p>Aviva’s launches have been widely covered as XRP news, but subscriptions buy fund shares backed by short-term sterling and dollar debt. The XRP involved is the network fee. XRPL <a href="https://xrpl.org/docs/concepts/transactions/transaction-cost" rel="noopener noreferrer nofollow">destroys a minimum of 10 drops, or 0.00001 XRP, per standard transaction</a>, rising only when the network is under heavy load. Issuing, moving or redeeming fund tokens burns tiny amounts of XRP, whatever the fund’s size.</p>
<p>The test of Aviva’s distribution bet is how many separate investors hold the tokens and how often shares move between them, rather than the size of the fund behind them. At £86 million across two currencies, that test has barely started.</p>
<p>The post <a href="https://coindoo.com/xrp-ledger-gets-tokenized-slice-of-a-22b-sterling-fund/" rel="noopener noreferrer nofollow">XRP Ledger Gets Tokenized Slice of a £22B Sterling Fund</a> appeared first on <a href="https://coindoo.com" rel="noopener noreferrer nofollow">Coindoo</a>.</p>

XRP Ledger Gets Tokenized Slice of a £22B Sterling Fund

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