Baillie Gifford has launched what it says is the first publicly available fully native UK regulated tokenized fund, bringing short duration fixed income investments onchain through Solana and Ethereum.
Key Takeaways
- Baillie Gifford launched the Baillie Gifford Enhanced Yield Fund (BAGEY), a fully native tokenized fund.
- The fund is structured as a UK regulated OEIC and uses Ethereum and Solana as the legal record of ownership.
- Eligible investors can invest using USDC or fiat, with a minimum investment of $100.
- The fund currently targets a yield of about 7% through a portfolio of short duration corporate bonds.
What Happened?
Investment manager Baillie Gifford has introduced the Baillie Gifford Enhanced Yield Fund (BAGEY) in partnership with BNY, marking a significant step in the tokenization of traditional financial products. The fund is designed as a fully native onchain investment vehicle rather than a digital representation of an existing fund.
The product gives eligible professional investors access to an actively managed portfolio of short duration fixed income assets while using blockchain technology as the official ownership record.
$BAGEY has launched on Solana.
— Solana (@solana) June 22, 2026
The Baillie Gifford (@BGDA_UK) Enhanced Yield Fund is the first publicly available, fully native UK-regulated tokenised fund issued onchain, settled in USDC, built with BNY.
Not a wrapper. The blockchain is the register of record. pic.twitter.com/jH1p55UY8q
Baillie Gifford Brings Fund Ownership Directly Onchain
Unlike many tokenized investment products that place a digital token on top of traditional fund infrastructure, BAGEY was created as a natively issued fund. According to Baillie Gifford, investors hold the fund directly through blockchain-based ownership records.
The fund is denominated in US dollars and operates under a UK regulated Open Ended Investment Company structure. Ownership records are maintained on public blockchains, specifically Ethereum and Solana, making the blockchain the legal source of truth for investor holdings.
Theo Golden, Head of Digital Assets and Tokenisation at Baillie Gifford, highlighted the importance of native issuance in the firm’s strategy.
BNY Provides Blockchain Infrastructure
Baillie Gifford developed the product in collaboration with BNY, which will provide tokenization and wallet infrastructure for the fund, subject to regulatory approvals. The structure is designed to simplify operational processes while increasing transparency for investors.
NatWest Trustee and Depositary Services Limited will serve as the fund’s depositary.
Katey Neate, Global Head of Investor Solutions at BNY, described the launch as an important development for traditional finance.
She added that the initiative could serve as a blueprint for how traditional financial assets are issued and serviced through blockchain-enabled infrastructure.
Focus on Fixed Income and Institutional Investors
The fund invests in public corporate bonds and is designed for professional investors seeking blockchain based access to regulated fixed income products.
According to Baillie Gifford, the portfolio currently offers an approximate 7% yield, a two year duration, and an average credit quality rating of BBB.
Investors can mint and redeem fund tokens directly using stablecoins or fiat currency. The fund will initially support USDC and offer daily dealing alongside a daily net asset value calculation.
The company said public blockchains improve interoperability and make the fund compatible with a growing ecosystem of tokenized assets, stablecoins, and onchain financial applications.
Growing Institutional Interest in Tokenization
The launch reflects a broader trend among major financial institutions exploring blockchain-based infrastructure for traditional investment products. By placing regulated fund ownership directly onchain, Baillie Gifford aims to create investment products that can operate more efficiently within digital financial markets.
The firm believes tokenization is becoming an important part of the future financial system rather than a short term innovation trend.
Stuart Dunbar, Partner at Baillie Gifford, said:
CoinLaw’s Takeaway
In my experience, the most meaningful tokenization projects are those that rebuild financial products from the ground up rather than simply placing blockchain technology on top of existing systems. I found Baillie Gifford’s approach noteworthy because it moves ownership records directly onto public blockchains while maintaining a regulated fund structure. If more traditional asset managers follow this model, tokenized funds could become a major bridge between conventional finance and the onchain economy.
