We report on the development of ultrasmall core-shell silver nanoparticles synthesized by an upscaled modification of the polyol process. It is foreseen to use these thoroughly characterized particles as reference material to compare the catalytic and biological properties of functionalized silver nanoparticles. Small-angle X-ray scattering (SAXS) analysis reveals a narrow size distribution of the silver cores with a mean radius of R-c = 3.0 nm and a distribution width of 0.6 nm. Dynamic light scattering (DLS) provides a hydrodynamic radius of RH = 10.0 nm and a PDI of 0.09. The particles surface is covered with poly(acrylic acid) (PAA) forming a shell with a thickness of 7.0 nm, which provides colloidal stability lasting for more than 6 months at ambient conditions. The PAA can be easily exchanged by biomolecules to modify the surface functionality. Replacements of PAA with glutathione (GSH) and bovine serum albumin (BSA) have been performed as examples. We demonstrate that the silver particles effectively catalyze the reduction of 4-nitrophenol to 4-aminophenol with sodium borohydride. With PAA as stabilizer, the catalytic activity of 436 +/- 24 L g(-1) s(-1) is the highest reported in the literature for silver nanoparticles. GSH and BSA passivate the surface substantially, resulting in a catalytic activity of 77.6 +/- 0.9 and 3.47 +/- 0.50 L g(-1) s(-1), respectively.