The Next Phase of Fund Tokenization
Institutional asset managers are moving from early deployment toward integrated financial infrastructure
On 26 October 2026, Aviva Investors introduced a tokenized share class for its Sterling Liquidity Fund, an established money market fund with approximately £22 billion in assets under management. The new share class allows eligible investors to hold fund interests through the XRP Ledger. Five days earlier, Generali Investments announced a natively tokenized share class for an existing Luxembourg-domiciled money market fund, initially restricted to authorized companies within the Generali Group.
Both institutions operate established asset management businesses with mature custody, administration and distribution arrangements. Their decisions to introduce blockchain-based share classes into existing funds reflect a broader development in institutional asset management: tokenization is increasingly being incorporated into established financial products and operating structures.
These developments also provide a useful indication of the industry’s current position. Institutional deployment has moved beyond isolated proof-of-concept projects, although digital distribution, operational integration and commercial adoption remain at relatively early stages.
Integrating Tokenization into Existing Funds
Aviva has adopted a digital twin model that preserves the fund’s existing legal, investment and custody arrangements while introducing an additional digital access layer. Eligible investors can hold representations of their fund interests on-chain through approved digital wallets, while the underlying fund continues to operate within its established regulatory framework.
The distinction between the size of the underlying fund and the amount invested through tokenized share classes is important. Aviva’s Sterling Liquidity Fund manages approximately £22 billion, while investments across the firm’s two tokenized share classes exceed £86 million, including a £50 million allocation from Aviva itself. As the two share classes relate to separate funds, their combined value cannot be used to calculate the tokenized proportion of the Sterling Liquidity Fund.
Generali has adopted a different approach, introducing a natively tokenized share class in which distributed ledger technology is used to represent and record fund units. The initial offering is restricted to authorized Generali Group companies, allowing the institution to deploy the infrastructure within its existing investment operations before extending access to external clients.
The two approaches illustrate different implementation priorities. Aviva has established a digital distribution channel for eligible investors, while Generali has begun with internal institutional deployment. Both preserve the underlying investment structures and concentrate the technological changes on fund ownership records, access and administration.
This gradual integration allows asset managers to connect digital custody, investor identification, fund registration and compliance processes to existing products without undertaking a comprehensive restructuring of their investment operations.
The Economic Rationale for Fund Tokenization
Established funds already benefit from mature systems for shareholder registration, custody, subscriptions, redemptions and regulatory reporting. The economic rationale for tokenization therefore rests on its potential contribution to distribution, operating efficiency and the financial utility of fund interests.
One immediate opportunity is the development of additional institutional distribution channels. As digital asset custody, on-chain treasury management and blockchain-based financial infrastructure expand, some institutional investors are seeking access to conventional investment products within these environments. Tokenized money market funds can provide exposure to established cash-management instruments through infrastructure already used by digitally active institutions.
Aviva’s expansion from a tokenized US dollar liquidity fund in July 2026 to its sterling offering in October reflects a progressive investment in this distribution capability. Generali’s more restricted deployment suggests an initial emphasis on establishing the operational framework required to support broader access.
Operational efficiency represents a second potential source of value. Distributed ledger technology can support shared ownership records, automated reconciliation and more integrated transaction processing across financial intermediaries. For funds involving multiple custodians, administrators and distribution platforms, these capabilities may eventually reduce operational duplication.
The economic outcome will depend on implementation. Digital twin arrangements still require consistency between on-chain representations and conventional fund records, potentially introducing additional reconciliation and technology costs. Efficiency improvements become meaningful when process automation and transaction volumes generate benefits that outweigh the costs of maintaining the infrastructure.
A third opportunity lies in expanding the financial uses of fund shares. Tokenized interests that can interact with regulated custody, payment and trading systems may eventually support institutional liquidity management, collateral arrangements and transactions across different financial platforms.
Such applications require enforceable ownership rights, appropriate transfer controls, reliable liquidity arrangements and compatible settlement infrastructure. The presence of a blockchain record alone does not establish these capabilities.
Together, these opportunities indicate that the longer-term commercial proposition for tokenized funds will depend increasingly on their integration into financial activity beyond conventional fund ownership.
Tokenization Enters the Institutional Product Integration Stage
The developments at Aviva and Generali suggest that fund tokenization is entering a stage of institutional product integration.
Earlier industry activity concentrated on technical feasibility, dedicated blockchain-based investment products and limited institutional pilots. Asset managers including BlackRock and Franklin Templeton have subsequently established operating tokenized funds, while newer initiatives are incorporating digital share classes into existing investment and distribution frameworks.
First, established legal, regulatory and custody structures continue to support the underlying financial assets. Tokenization is being applied selectively to ownership representation, shareholder records and transaction processes. This allows institutions to introduce digital functionality while retaining familiar investment and regulatory arrangements.
Second, implementation is proceeding through controlled expansion. Aviva has opened its tokenized share classes to eligible investors, while Generali has limited its initial deployment to affiliated institutions. These approaches reflect different choices concerning operational complexity, compliance controls and client access.
Third, financial infrastructure remains fragmented. Tokenized fund shares must operate alongside traditional transfer agents, custodians, payment systems and investment platforms. Interoperability between networks, legal recognition of transfers and the allocation of operational responsibilities remain important constraints on broader institutional adoption.
The European Central Bank’s April 2026 assessment of tokenized money market funds similarly identified potential improvements in settlement efficiency and collateral functionality, alongside liquidity and operational risks that require continued attention.
The industry has therefore progressed from experimental issuance toward established product deployment, with infrastructure integration developing unevenly across institutions and jurisdictions.
From Institutional Products to Market Infrastructure
The first is broader institutional distribution. Asset managers can progressively extend existing funds into digital custody networks, banking platforms and institutional investment systems. Money market funds are particularly relevant because of their established role in short-term liquidity management and the potential demand for regulated cash-management instruments within digital financial markets.
The second is closer integration between tokenized assets, digital money and settlement infrastructure. Fund subscriptions, redemptions, transfers and collateral use ultimately require coordination between securities ownership, cash payments and custody arrangements. Developments in tokenized deposits, regulated stablecoins and interoperable settlement systems may therefore influence the usefulness and adoption of tokenized fund shares.
The third is greater operational standardization. Common approaches to shareholder registration, investor eligibility, compliance controls and cross-institutional transactions could reduce the cost of integrating tokenized products into financial platforms. Over time, these arrangements may allow asset managers to distribute the same underlying investment products across multiple compliant digital networks.
The pace of development will remain dependent on regulation, technical interoperability, institutional demand and the economics of implementation. Progress is also likely to vary across asset classes and jurisdictions.
A mature tokenized fund market would operate through established and interoperable financial infrastructure. Investors would be able to hold and use regulated fund interests across approved channels, asset managers could distribute products through connected institutional networks, and custodians and settlement providers would support reliable transactions between systems.
In such a market, tokenization would function as part of routine fund infrastructure, contributing to asset mobility, capital efficiency and operational performance.
Aviva and Generali illustrate how major European asset managers are beginning to establish the foundations of this model. The next stage will depend on how effectively these institutional products become connected to investors, payment arrangements and the wider infrastructure through which financial assets are held, transferred and used.
Further Reading : Institutional Tokenized Funds
The following seven cases illustrate the development of tokenized investment funds across shareholder recordkeeping, institutional distribution, cash management and trading infrastructure.
1. BlackRock | USD Institutional Digital Liquidity Fund (BUIDL)
Launched in March 2024, BUIDL invests primarily in US Treasury securities, cash and repurchase agreements. The fund surpassed $1 billion in assets in March 2025. In February 2026, Securitize and Uniswap Labs announced an integration enabling eligible BUIDL investors to access on-chain trading through UniswapX, extending the fund’s potential applications in institutional liquidity management.
2. Franklin Templeton | Franklin OnChain U.S. Government Money Fund (FOBXX / BENJI)
Launched in 2021, FOBXX was among the earliest US-registered investment funds to use a public blockchain for transaction processing and official shareholder recordkeeping. Each fund share is represented by one BENJI token. As of September 2026, the fund managed approximately $668 million, demonstrating the sustained operation of blockchain-integrated shareholder administration within a regulated investment fund.
3. WisdomTree | Treasury Money Market Digital Fund (WTGXX)
Launched in November 2023, WTGXX uses blockchain-integrated shareholder recordkeeping within a regulated money market fund structure. By October 2026, WisdomTree Securities offered eligible investors continuous secondary-market liquidity through its institutional infrastructure. The product illustrates the extension of tokenization from fund ownership records toward trading and settlement applications.
4. Fidelity Investments | Fidelity Treasury Digital Fund (FYOXX)
Fidelity’s Treasury Digital Fund incorporates an OnChain share class into a registered US Treasury money market fund. The structure combines conventional short-term government securities investment with digital ownership records, reflecting the integration of tokenized share classes into established regulated investment products. The OnChain class is identified under ticker FYOXX in its June 2026 SEC prospectus.
5. J.P. Morgan Asset Management | MONY and JLTXX
J.P. Morgan introduced MONY in December 2025 and subsequently launched JLTXX, a registered government money market fund designed to support institutional liquidity management, including potential applications for stablecoin issuers. In October 2026, both products became available on Solana to qualified US investors through the Morgan Money platform. The expansion demonstrates how tokenized fund distribution can be incorporated into established institutional cash-management services across multiple blockchain networks.
6. UBS Asset Management | UBS USD Money Market Investment Fund Token (uMINT)
Launched in November 2024 on Ethereum, uMINT provides access to institutional money market investments through UBS’s tokenization infrastructure and authorized distribution partners. In November 2025, UBS and DigiFT completed a live tokenized fund subscription and redemption workflow using the Chainlink Digital Transfer Agent standard, demonstrating the potential for more integrated cross-platform fund administration.
7. Amundi and Spiko | Spiko Amundi Overnight Swap Fund (SAFO)
Introduced in March 2026, SAFO is a tokenized sub-fund established under the French regulatory framework, with Amundi serving as delegated investment manager. Designed for corporate treasury and institutional collateral management, it offers share classes in EUR, USD, GBP and CHF, with continuous transferability and blockchain-enabled settlement functionality. Its structure illustrates the application of tokenization to institutional liquidity and collateral operations.
References
- Aviva Investors. Aviva Investors Expands Tokenisation Offering. 26 October 2026.
- Generali Investments. Generali Investments Launches Its First Tokenized Fund Class. 21 October 2026.
- European Central Bank. Tokenised Money Market Funds: New Technology, Familiar Risks? Macroprudential Bulletin, Issue 33, April 2026.
- Securitize and Uniswap Labs. Uniswap Labs and Securitize Collaborate to Unlock Liquidity Options for BlackRock’s BUIDL. 11 February 2026.
- Franklin Templeton. Franklin OnChain U.S. Government Money Fund. Fund information, September 2026; Franklin Templeton Announces Availability of Peer-to-Peer Transfers for Franklin OnChain U.S. Government Money Fund. 25 April 2024.
- WisdomTree. Tokenized Funds, fund information, October 2026; Q3 2026: Widening Access Without Lowering the Bar. 22 October 2026.
- Fidelity Investments. Fidelity Treasury Digital Fund, OnChain Class. Summary Prospectus, 29 June 2026.
- J.P. Morgan Asset Management. J.P. Morgan Asset Management Expands Access to Its Tokenized Money Market Funds on Solana. 22 October 2026.
- UBS Asset Management. UBS Asset Management Launches Its First Tokenized Investment Fund. 1 November 2024; UBS Executes First Live Tokenized Fund Transaction Leveraging the Chainlink Digital Transfer Agent Technical Standard. 4 November 2025.
- Amundi and Spiko. Spiko and Amundi Introduce SAFO, a New Tokenized Fund for Global Treasury and Collateral Management. 19 March 2026.