Aviva Investors, the asset management arm of U.K. insurance giant Aviva, has announced a landmark partnership with blockchain firm Ripple to tokenize traditional fund structures on the XRP Ledger (XRPL). The collaboration, revealed in a press release on Wednesday, marks Aviva Investors' first major foray into blockchain-based products and represents Ripple's first partnership with a Europe-based investment manager.
The agreement will see Ripple support Aviva Investors in issuing and managing tokenized funds on XRPL, a public blockchain specifically designed for payments and financial transactions. Aviva Investors manages over $500 billion in assets, making this one of the most significant institutional moves into blockchain tokenization to date.
"We believe there are many benefits that tokenisation can bring to investors, including improvements in terms of both time and cost efficiency," said Jill Barber, chief distribution officer at Aviva Investors. "We are committed to adopting technological advancements that we believe can bring about positive change for our business, and we think tokenized funds can be hugely beneficial to our clients."
The partnership will extend through 2026 and beyond as the companies develop tokenized fund structures. Tokenization converts real-world financial assets into digital tokens that can be settled on blockchain networks, promising faster settlement times, lower operational costs, broader distribution capabilities, and features like fractional ownership and automated compliance.
This move aligns with a broader industry trend where major financial institutions are increasingly exploring blockchain-based versions of traditional investment vehicles. Firms including BlackRock, Franklin Templeton, and Hamilton Lane have already introduced tokenized products, signaling a shift from pilot projects to live, regulated offerings aimed at institutional investors. Analysts project the real-world asset (RWA) tokenization market could reach $10 trillion by 2030.
The XRP Ledger, which launched in 2012, has processed more than 4 billion transactions and supports over 7 million wallets. Maintained by 120 independent validators, the network doesn't rely on energy-intensive mining and currently processes around 1,500 transactions per second. Adding tokenized funds from a major asset manager like Aviva could significantly increase network activity and transaction volume.
For Ripple, this partnership builds on earlier institutional efforts, including its 2023 Dubai licensing approval for XRP-based payment services, and strengthens the company's position in the growing RWA tokenization sector.
