Baillie Gifford has launched what it describes as the United Kingdom’s first fully native tokenized investment fund, putting a traditional fixed-income product directly onto public blockchains. The new vehicle, the Baillie Gifford Enhanced Yield Fund (BAGEY), was introduced by the Edinburgh-based asset manager in partnership with BNY.
Ethereum and Solana function as the ownership record
BAGEY differs from tokenized products that simply add blockchain features to existing fund structures. In this case, the fund operates fully onchain, with Ethereum and Solana serving as the official ownership registry. Blockchain records act as the primary source of ownership, while investors receive onchain-issued tokens representing direct interests in the fund. Those records remain visible and verifiable on public networks, with the legal rights of the investment attached to them.
Theo Golden, Baillie Gifford’s head of digital assets and tokenization, said the firm’s goal is to use blockchain infrastructure to improve transparency, ownership structures, and settlement efficiency. The company chose Ethereum because of its large ecosystem of tokenized financial products, while Solana was selected for faster transaction processing and lower operating costs. Using both networks also gives the fund a broader compatibility base for future financial systems and digital asset platforms.
Short-duration corporate bond strategy with about 7% yield
BAGEY is a U.S. dollar-denominated, short-duration fixed-income fund investing in actively managed corporate bonds. The portfolio currently offers a yield of about 7%, carries an average credit rating of BBB, and has a duration of roughly two years. Eligible professional investors in the UK, Switzerland, and the Cayman Islands can subscribe to and redeem shares on a daily basis.
Investors can fund positions with either traditional currencies or stablecoins. At launch, the fund supports USDC issued by Circle, and the minimum investment size is $100. NatWest Trustee and Depositary Services acts as the depositary, while BNY provides the tokenization infrastructure and the digital wallet services tied to the product.
Tokenization moves into regulated fund structures
The launch shows how traditional financial firms are using blockchain for fund administration, settlement, and investor access rather than limiting tokenization to pilot efforts. Baillie Gifford described tokenization as a long-term strategic initiative. The firm has more than 25 years of experience managing bond portfolios and is also known for early investments in Amazon.
Baillie Gifford remains invested in SpaceX, Anthropic, and Bending Spoons. Katey Neate, BNY’s global head of investor solutions, said the launch shows tokenization entering practical use cases and pointed to a structure that could influence how traditional assets are issued, owned, and managed through blockchain infrastructure.