X Change: 

BlackRock, Stablecoins and the Next Step for Tokenised Funds

Your briefing on digital assets, stablecoins and financial infrastructure

Tokenising an investment fund is one thing. Making that fund work alongside digital money is another.

Over the past two weeks, developments in Japan, the United Kingdom and the United States have highlighted how financial institutions are approaching both sides of that equation.

BlackRock, SBI Holdings and Startale have agreed to explore connecting tokenised money market funds with a Japanese yen stablecoin. Aviva Investors has launched a tokenised share class of its £22 billion Sterling Liquidity Fund. Meanwhile, Ripple and Coinbase are expanding access to RLUSD across trading and institutional platforms.

Alongside these commercial developments, the Bank for International Settlements has published a report examining how central banks should respond as stablecoins, tokenised deposits and new payment providers become more prominent.

Together, these stories raise a practical question for the next stage of tokenisation:

How do digital investment assets, digital money and existing financial infrastructure work together?

Institutional Tokenisation

BlackRock, SBI and Startale explore connecting tokenised funds with a yen stablecoin

BlackRock, SBI Holdings and Startale have signed a memorandum of understanding to explore connecting tokenised money market funds with JPYSC, a Japanese yen-denominated stablecoin.

The collaboration brings together BlackRock's asset management expertise, SBI's Japanese financial services network and Startale's blockchain infrastructure capabilities.

The companies will examine three areas:

• Technology and infrastructure: The requirements for connecting tokenised money market funds with JPYSC.
• Business and distribution: Potential commercial models and channels for bringing these products to market.
• Regulation and market development: The regulatory considerations involved in connecting tokenised investment products with stablecoins.

The initiative is intended to accommodate participation from other financial institutions and businesses, both in Japan and internationally.

Importantly, this is an exploratory agreement. The companies have not announced a completed integration or a generally available investment and settlement service.

Why it matters

Tokenised funds and stablecoins have often developed as separate parts of the digital asset market.

Tokenised money market funds provide a digital representation of investment holdings. Stablecoins provide a means of holding or transferring value in a particular currency.

Connecting the two could eventually make it easier to move between cash-like digital assets and investment products within a shared infrastructure environment.

For institutions, the potential applications extend beyond faster transfers. They could include more flexible liquidity management, streamlined fund transactions and closer integration between investment holdings and settlement processes.

However, the commercial benefits will depend on how these systems are connected in practice, including the legal structure of the assets, investor eligibility, liquidity, redemption and settlement arrangements.

The involvement of BlackRock, SBI and Startale makes the initiative worth watching, but the next meaningful milestone will be evidence of an operational integration.

Source: Startale — BlackRock, SBI Holdings and Startale Sign MOU, 27 October 2026

Asset Management

Aviva Investors launches tokenised share class of its £22 billion liquidity fund

Aviva Investors has launched a tokenised share class of its Sterling Liquidity Fund on the XRP Ledger, working with Ripple.

The underlying fund, which has approximately £22 billion in assets under management, invests in high-grade sterling-denominated short-term debt instruments and is designed to provide daily liquidity.

The launch follows Aviva's introduction of a tokenised share class for its US-dollar liquidity fund in July.

Aviva reports that more than £86 million is now invested across its two tokenised share class offerings, including a £50 million investment by Aviva in the new sterling share class.

The distinction is important: the £22 billion figure represents the size of the underlying Sterling Liquidity Fund, not the value of assets held through its tokenised share class.

The new offering uses a digital twin structure, under which investor holdings are represented on-chain while the underlying fund continues to operate within its existing off-chain legal and investment framework.

Eligible investors can access the tokenised share class using digital wallets. Aviva says it retains the same investment objective, risk profile, liquidity characteristics and regulatory protections as the conventional fund.

BNY serves as custodian of the fund's assets, while Komainu and Licuido supported the tokenised share class launch.

Why it matters

This is a different stage of development from an exploratory partnership.

Aviva has launched a tokenised investment product within an established fund structure.

Rather than replacing the underlying fund, the tokenised share class introduces a new way for eligible investors to hold and interact with their investment.

That distinction may be important for institutional adoption.

Fund managers already operate within established frameworks covering custody, investor eligibility, valuation, liquidity and regulatory oversight. Introducing tokenised access within those structures may be more practical than rebuilding the entire investment product around blockchain technology.

The development also illustrates that tokenisation is not limited to US-dollar assets. Sterling-denominated investment products are becoming part of the market.

The next question is how widely these tokenised holdings can be distributed and whether they can support additional activities, such as collateral management or more integrated settlement arrangements.

Source: Aviva Investors — Tokenised Sterling Liquidity Fund Share Class, 26 October 2026

Stablecoins & Market Access

Ripple and Coinbase expand access to RLUSD

Ripple and Coinbase have announced a partnership to expand access to Ripple USD (RLUSD), Ripple's US-dollar stablecoin.

RLUSD is now available through Coinbase Prime, Coinbase Exchange and Coinbase's retail application, giving institutional and retail customers additional ways to trade and manage the asset.

The integration supports conversion between US dollars, RLUSD and other supported US-dollar stablecoins.

Ripple also announced support for deposits and withdrawals across the XRP Ledger, Base and Ethereum, broadening the networks through which RLUSD can be accessed.

Additional capabilities for Coinbase Global Exchange customers, including the potential use of RLUSD as collateral, are planned but were not announced as generally available at launch.

Ripple reported that RLUSD had exceeded US$2.4 billion in market capitalisation at the time of the announcement.

Why it matters

For a stablecoin to be commercially useful, issuance is only the starting point.

Institutions also need reliable ways to acquire it, hold it, convert it, transfer it and access liquidity when required.

Exchange and custody integrations can therefore be just as important as the blockchain on which a stablecoin operates.

The Ripple–Coinbase partnership expands the infrastructure through which RLUSD can be accessed, particularly for institutional customers already using Coinbase's trading and custody services.

It also highlights the competitive importance of distribution.

Stablecoin issuers are not simply competing on token design or reserve arrangements. They are competing on the breadth and quality of the financial infrastructure supporting their assets.

That includes exchange availability, liquidity, custody, payment connectivity and the ability to move between digital and traditional currencies.

For businesses, these supporting services often determine whether a stablecoin is practical to use.

Source: Ripple — Ripple and Coinbase Partner to Expand Access to Ripple USD, 28 October 2026

Global Policy & Payments

BIS examines the role of central banks as digital payment systems evolve

The Bank for International Settlements' Committee on Payments and Market Infrastructures (CPMI) has published a report examining how technological developments are changing payment systems and the role of central banks.

The report, The roles of central banks and central bank money in the evolving payment system, considers developments including stablecoins, tokenised deposits, fast payment systems, non-bank payment providers and programmable payment platforms.

It examines how these changes may improve efficiency, competition and access to payment services while also introducing new interdependencies and risks.

These include credit, liquidity, operational and cybersecurity risks.

A central conclusion is that central bank money remains fundamental to trust and stability in the payment system, even as private-sector payment instruments and infrastructure continue to evolve.

The report also considers how central banks may need to adapt their roles as issuers of money, operators and overseers of payment systems, and facilitators of market development.

This is a policy analysis, not the introduction of new binding regulations.

Why it matters

The development of stablecoins and tokenised deposits raises questions that extend beyond technology.

If different forms of digital money are used across banks, payment providers and blockchain networks, institutions need confidence that value can move between them safely.

That includes questions of convertibility, settlement certainty, liquidity and operational resilience.

The BIS report reinforces the importance of central bank money as an anchor for the broader financial system, while recognising that private-sector payment providers can contribute innovation and competition.

For stablecoin issuers and financial infrastructure providers, the implication is significant.

Technical interoperability alone is not enough.

Different forms of money also need credible arrangements for settlement, redemption, risk management and interaction with the existing financial system.

As more institutions explore tokenised financial products, these questions will become increasingly relevant.

Sources: BIS — The Roles of Central Banks and Central Bank Money in the Evolving Payment System, 29 October 2026 | BIS — CPMI Media Release

Australian Perspective

Why local-currency digital money matters

The developments in Japan and the United Kingdom raise an important question for Australia's digital asset market.

As investment products become tokenised, what currencies will institutions use to transact, settle and manage liquidity around them?

Much of the stablecoin market has developed around US-dollar assets. That provides access to an established pool of digital-asset liquidity, but it does not remove the currency requirements of businesses operating in other markets.

Australian companies, investment managers and financial institutions continue to manage substantial parts of their activities in Australian dollars.

For these participants, a digital financial system built predominantly around US-dollar settlement may introduce additional currency conversion and treasury considerations.

The BlackRock, SBI and Startale initiative is therefore relevant beyond Japan.

It explores the potential relationship between tokenised investment products and digital money denominated in a domestic currency.

Aviva's sterling-denominated tokenised fund provides another example of digital investment infrastructure developing beyond the US dollar.

Neither development establishes that equivalent arrangements are commercially available in Australia.

However, they illustrate why local-currency digital money may become increasingly relevant as tokenised financial products develop.

The practical challenge

For an Australian-dollar stablecoin to support broader financial-market activity, the availability of the token itself is only one requirement.

Institutions also need:

• Reliable AUD liquidity and conversion services.
• Appropriate custody and asset-holding arrangements.
• Connectivity with banks, exchanges and payment providers.
• Clear settlement and redemption processes.
• Compliance and operational infrastructure suited to their activities.

Without those supporting services, digital settlement can simply introduce another operational layer.

The opportunity lies in connecting AUD-denominated digital assets with financial services that institutions already use, rather than expecting businesses to replace their existing systems.

This is an area to watch as Australia develops its digital asset regulatory and financial-market infrastructure.

The Bigger Picture

Tokenisation needs money, markets and infrastructure to work together

The developments of the past two weeks show several different parts of the market progressing.

• BlackRock, SBI and Startale are exploring the connection. Their proposed collaboration examines how tokenised investment funds and a yen stablecoin could work together.

• Aviva Investors is developing the investment product. Its tokenised share class gives eligible investors a new way to hold an existing regulated liquidity fund.

• Ripple and Coinbase are expanding access to digital money. Their partnership broadens the trading, custody and network infrastructure supporting RLUSD.

• The BIS is examining the foundations. Its report considers how different forms of money and payment infrastructure can coexist while preserving trust, settlement safety and financial stability.

These are not interchangeable developments.

An exploratory agreement, a launched investment product, a stablecoin distribution partnership and a central bank policy report each represent different stages of market development.

But viewed together, they highlight the same underlying challenge.

Tokenisation becomes more useful when digital assets can interact with the money and financial infrastructure needed to transact with them.

That requires more than representing an asset on a blockchain.

It requires liquidity, distribution, custody, settlement, compliance and interoperability between different forms of money.

The next stage of tokenisation will be shaped by how effectively these components are connected.

Where AUDX fits

As tokenised financial products develop across different currencies, the availability of digital settlement assets denominated in those currencies becomes increasingly relevant.

AUDX is our Australian dollar stablecoin, providing a way to hold and transfer AUD-denominated value across supported digital asset infrastructure.

The longer-term opportunity is to make Australian-dollar value more accessible within digital financial markets, alongside the liquidity, conversion, banking and settlement services required for practical use.

You already use Australian dollars. AUDX simply lets you use them in more places.