Baillie Gifford Launches Tokenized Bond Fund on Ethereum and Solana

Baillie Gifford, the 118-year-old investment management firm based in Edinburgh, has launched a new tokenized fixed-income fund on the Ethereum and Solana blockchains in partnership with BNY. The move reflects the growing use of blockchain technology by major financial institutions seeking to modernize investment products.

The Baillie Gifford Enhanced Yield Fund (BAGEY) is a U.S. dollar-denominated fund that gives eligible investors access to an actively managed portfolio of short-duration public corporate bonds. The fund currently offers a yield of about 7%.

Blockchain Serves as Official Record of Ownership

BAGEY operates through a U.K.-regulated Open Ended Investment Company (OEIC) structure. According to Baillie Gifford, the blockchain acts as the official register of record, allowing investors to hold the fund directly onchain.

Theo Golden, Head of Digital Assets and Tokenization at Baillie Gifford, said the fund is not simply a token placed on top of an existing investment product. He explained that the fund itself is issued onchain, giving investors direct ownership and direct recourse.

Investor Access and Infrastructure Support

BNY is providing the tokenization and wallet infrastructure for the fund, while NatWest Trustee and Depositary Services will serve as the depositary.

The fund is available to eligible investors in the United Kingdom, Switzerland and the Cayman Islands, subject to local regulations. Katey Neate, Global Head of Investor Solutions at BNY, said the launch demonstrates how regulated fund structures can evolve to support a more digital and connected financial marketplace.