Aviva Investors and Ripple have partnered with the joint intention of tokenising traditional fund structures.
Through the collaboration, Ripple will support Aviva as part of a broader initiative to bring traditional assets with real utility onto the XRP Ledger (XRPL).
“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 of Aviva Investors.
“As the investment arm of the UK’s leading insurer, we have a long track record with regards to innovation.”
The announcement marks a first for both parties: Ripple’s first partnership with a Europe-based investment management firm, and Aviva’s initial pilot exploring tokenised solutions for its existing offerings.
The XRPL provides Aviva Investors with a fast, secure and cost-efficient infrastructure to issue and manage its tokenised funds, while its no-mining consensus mechanism enhances energy efficiency, the companies said.
Nigel Khakoo, vice president of trading and markets at Ripple, added: “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.”
