Aviva Investors is preparing to bring traditional fund structures onto the XRP Ledger through a new partnership with Ripple, marking the U.K. asset manager’s first move into blockchain based tokenization. The collaboration reflects growing momentum among global financial institutions seeking to modernize fund infrastructure using distributed ledger technology.
Under the agreement, Ripple will support Aviva Investors in issuing and managing tokenized versions of its funds on the XRP Ledger, a public blockchain designed to facilitate payments and financial transactions. The initiative is expected to begin development this year, with both firms indicating a longer term commitment to expanding regulated onchain investment products through 2026 and beyond.
For Aviva Investors, the move represents a strategic step toward integrating blockchain capabilities into its existing asset management operations. Tokenization allows traditional financial instruments such as fund shares to be represented as digital tokens on a blockchain. This structure can streamline settlement processes, reduce administrative costs and improve transparency across investor records.
Ripple, meanwhile, gains its first partnership with a Europe based asset manager as it continues to position the XRP Ledger as infrastructure for institutional finance. The ledger, launched in 2012, has processed billions of transactions and is maintained by a distributed network of independent validators rather than energy intensive mining systems. Its architecture is designed to support efficient transaction settlement and programmable financial use cases.
Asset managers worldwide have increasingly explored tokenization as a way to enhance operational efficiency and expand access to investment products. Major financial institutions have already introduced tokenized versions of money market funds, private credit vehicles and other strategies. These offerings are often structured to meet regulatory standards while leveraging blockchain technology for faster settlement cycles and automated compliance mechanisms.
Tokenized funds can also enable fractional ownership, allowing investors to access portions of assets that might otherwise require higher minimum commitments. Additionally, smart contract features can embed rules related to transfers, reporting and investor eligibility directly into the asset’s code, potentially reducing manual oversight and reconciliation processes.
Aviva Investors emphasized that tokenization may deliver improvements in both time and cost efficiency for clients. By experimenting with blockchain based issuance, the firm aims to evaluate how digital infrastructure can coexist with established fund structures and regulatory requirements.
The partnership comes at a time when institutional adoption of blockchain technology is shifting from pilot projects toward live, production level deployments. While tokenization remains in an early stage relative to the size of global capital markets, increasing participation from established asset managers suggests that distributed ledger applications are becoming more embedded in mainstream financial strategy.
As financial firms continue to assess how blockchain can support regulated products, Aviva Investors’ collaboration with Ripple underscores a broader industry transition toward digital representations of traditional assets. The success of such initiatives will likely depend on regulatory alignment, technological reliability and investor demand for more efficient and transparent fund models.
