Baillie Gifford has launched a tokenized fixed-income fund with global custody firm BNY, putting a regulated investment product on Ethereum and Solana. The vehicle, called Baillie Gifford Enhanced Yield Fund (BAGEY), is denominated in U.S. dollars and gives eligible investors access to an actively managed portfolio of short-duration public corporate bonds.
The fund is issued on-chain rather than wrapped in a token
According to the announcement, BAGEY is not a traditional fund with a token layered on top. Baillie Gifford said the fund itself is issued on-chain, with the blockchain serving as the official record. Theo Golden, the firm's head of digital assets and tokenization, said investors hold the fund directly and have direct recourse.
The structure uses a UK-regulated Open-Ended Investment Company, or OEIC. That framework is commonly used for collective investment vehicles that pool capital from multiple investors and allocate it into assets such as equities or bonds. In this case, the underlying portfolio consists of actively managed short-dated corporate debt, and the fund is currently offering a yield of about 7%.
BNY handles tokenization and wallet infrastructure
BNY is providing tokenization infrastructure and wallet services for the product. NatWest Trustee and Depositary Services will act as the fund's depositary. The fund will be made available to eligible investors in the UK, Switzerland, and the Cayman Islands, subject to applicable laws, regulations, and distribution restrictions in those markets.
Katey Neate, global head of investor solutions at BNY, said tokenization has moved from concept to real-world use and that the launch shows how regulated fund structures can adapt to a more digital and connected market.
RWA tokenization reaches deeper into traditional fund structures
Baillie Gifford, based in Edinburgh, has been operating for 118 years. Golden said real-world asset tokenization is changing traditional finance, but simply placing a digital layer over legacy infrastructure does not fundamentally improve financial systems.
The companies also said that both Baillie Gifford and BNY have been added to the Financial Conduct Authority's register of crypto firms. The launch offers a concrete example of how public blockchains, regulated fund structures, and established custody providers are being combined in a live investment product.