Aviva Investors, the asset management division of U.K. insurer Aviva, has announced a strategic collaboration with blockchain company Ripple to tokenize traditional fund structures on the XRP Ledger (XRPL). This partnership marks a significant step for Aviva Investors as it delves into the realm of tokenization, aiming to incorporate blockchain-based financial products into its offerings.
Ripple will provide its expertise to assist Aviva Investors in the issuance and management of tokenized funds on the XRPL, a public blockchain tailored for financial transactions and payments. The initiative is notable as it represents Ripple’s inaugural collaboration with a Europe-based investment manager, furthering its mission to transition regulated financial assets to blockchain infrastructure.
The trend of tokenization among asset managers has gained momentum, as firms recognize the potential benefits of modernizing fund infrastructure. By leveraging digital tokens to signify shares in various investment strategies—including money market funds, private credit, and real estate—tokenization offers a range of advantages. These include accelerated settlement times, reduced operational costs, and enhanced distribution capabilities. Moreover, it allows for features such as fractional ownership and automated compliance.
Industry giants like BlackRock, Franklin Templeton, and Hamilton Lane have already begun to roll out tokenized financial products, transitioning from experimental pilot projects to tangible regulated offerings aimed at institutional investors. This growing adoption underscores a significant shift within the asset management sector toward embracing blockchain technology.
Aviva Investors and Ripple plan to collaborate through 2026 and beyond to develop these tokenized fund structures on the XRPL. Founded in 2012, the XRP Ledger has processed over 4 billion transactions and currently supports more than 7 million wallets. It operates with the assistance of 120 independent validators and does not utilize energy-intensive mining processes, showcasing its efficiency.
Jill Barber, the chief distribution officer at Aviva Investors, emphasized the potential advantages of tokenization for investors, highlighting improvements in both time and cost efficiency. She stated the firm’s commitment to embracing technological innovations that could bring about positive developments in their business and underscore the significant benefits that tokenized funds could provide their clients.
