- Baillie Gifford launched Britain’s first fully native tokenized investment fund.
- BAGEY offers 7% yield through actively managed corporate bonds.
- Ethereum and Solana serve as official ownership record infrastructure.
Baillie Gifford has launched the United Kingdom’s first fully native tokenized investment fund, bringing a traditional fixed-income product directly onto public blockchain networks. The Edinburgh-based asset manager introduced the Baillie Gifford Enhanced Yield Fund, known as BAGEY, in partnership with BNY. Unlike many tokenized funds that add blockchain features to existing structures, BAGEY operates entirely onchain. The fund uses Ethereum and Solana as its official ownership registry, allowing blockchain records to serve as the primary source of ownership.
The launch reflects growing interest among traditional financial firms seeking to use blockchain technology for fund administration, settlement, and investor access. Moreover, it highlights how tokenization is moving beyond pilot programs and into regulated investment products. BAGEY is a dollar-denominated, short-duration fixed-income fund that invests in actively managed corporate bonds. The portfolio currently offers a yield of around 7%, maintains an average BBB credit rating, and carries a duration of approximately two years.
Eligible professional investors in the United Kingdom, Switzerland, and the Cayman Islands can subscribe to and redeem shares daily. Additionally, investors can fund positions using either traditional currencies or stablecoins. Initially, the fund supports USDC issued by Circle. The minimum investment requirement is $100. Meanwhile, NatWest Trustee and Depositary Services acts as the fund’s depositary. BNY provides the tokenization infrastructure and digital wallet services supporting the product.
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Fund Uses Blockchain as the Official Record of Ownership
According to Theo Golden, Baillie Gifford’s head of digital assets and tokenization, the firm’s objective is to improve transparency, ownership structures, and settlement efficiency through blockchain infrastructure. Under the model, investors receive blockchain-issued tokens representing direct ownership in the fund. Consequently, ownership records remain visible and verifiable on public networks while maintaining legal rights linked to the investment.
Baillie Gifford selected Ethereum and Solana because both networks play important roles in the digital asset sector. Ethereum supports a large ecosystem of tokenized financial products. Solana, meanwhile, offers faster transaction processing and lower operating costs. Additionally, operating across two major blockchain networks may improve compatibility with future financial systems and digital asset platforms.
The company described tokenization as a long-term strategic initiative rather than a temporary market trend. Baillie Gifford has more than 25 years of experience managing bond portfolios and is widely known for early investments in companies including Amazon. The firm also remains invested in SpaceX, Anthropic, and Bending Spoons. BNY Global Head of Investor Solutions Katey Neate said the launch demonstrates how tokenization is increasingly entering practical use cases. She added that the structure could help shape how traditional assets are issued, owned, and managed through blockchain infrastructure in the future.
Conclusion
The launch of BAGEY marks another step in the adoption of tokenized financial products by established asset managers. As more institutions explore blockchain-based ownership models, fully onchain investment funds could become a larger part of traditional financial markets.
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