On 11th February, Aviva Investors, the global asset management division of Aviva plc, and the financial technology company Ripple finalised a strategic partnership to tokenise traditional fund structures.

Under the agreement, Ripple will provide technical support to Aviva Investors as part of a broader initiative to integrate traditional financial assets onto the XRP Ledger, a decentralised open-source blockchain platform designed for efficient global financial transactions. 

More on the partnership 

The XRP Ledger technology enables Aviva Investors to issue and manage tokenised funds through secure, low-cost blockchain transactions with rapid settlement capabilities. The platform’s design, which eliminates the need for mining to validate transactions, is expected to support enhanced energy efficiency compared to alternative blockchain networks. 

The system provides compliance capabilities specifically designed for financial institutions operating within regulated markets.

Since its establishment in 2012, the XRP Ledger has processed more than 4 billion transactions, currently supports in excess of 7 million active wallets, and operates through a network of 120 independent validators that maintain system integrity.

Implications for the companies 

This is Ripple’s first partnership with a European-based investment management firm, extending the company’s established relationships with financial institutions in other regions.

Nigel Khakoo, Vice President, Trading and Markets, Ripple, said, “Tokenisation is now moving from experimentation to large-scale production. Institutions like Aviva Investors are now focused on how to deploy regulated financial assets at scale. The development of tokenised fund structures is one that we believe can bring huge technological efficiencies to the investment sector, and we expect this to take full effect over the next decade. With its built-in compliance tools, near-instant settlement, and native liquidity, the XRPL provides the secure and scalable infrastructure required to support the next generation of institutional assets.”      

For Aviva Investors, the initiative marks their inaugural venture into tokenised solutions as the firm seeks to incorporate blockchain technology into its existing product offering. 

“We’re really delighted to announce our collaboration with Ripple, and we look forward to working closely with the team to explore tokenising solutions. We believe there are many benefits that tokenisation can bring to investors, including improvements in terms of both time and cost efficiency. As the investment arm of the UK’s leading insurer, we have a long track record with regards to innovation,” 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 tokenised funds can be hugely beneficial to our clients,” said Jill Barber, Chief Distribution Officer at Aviva Investors,” he added.

Both organisations have committed to a long-term partnership extending through 2026 and beyond, with the explicit goal of bringing tokenised funds to the XRP Ledger.