TradFi fund manager Baillie Gifford introduces Solana, Ethereum tokenized fund with BNY
Private Credit
Edinburgh-based investment firm Baillie Gifford has launched the Baillie Gifford Enhanced Yield Fund (BAGEY), a tokenized fixed-income fund offering exposure to short-duration public corporate bonds. Developed in collaboration with BNY, the fund utilizes both the Ethereum and Solana blockchains to serve as the official register of record, rather than merely wrapping existing assets. Structured as a U.K.-regulated Open-Ended Investment Company (OEIC), the fund provides eligible investors in the U.K., Switzerland, and the Cayman Islands with direct ownership and recourse. BNY provides the necessary tokenization and wallet infrastructure, while NatWest Trustee and Depositary Services acts as the depositary. Currently yielding approximately 7%, the fund represents a shift toward native onchain issuance within traditional finance frameworks. This development is significant for the RWA market as it demonstrates how established institutional players are moving beyond experimental pilots to integrate blockchain technology into core regulated fund structures. By prioritizing direct onchain ownership, the initiative aims to improve the efficiency and transparency of traditional investment vehicles.
Key points
- ▸Baillie Gifford launched BAGEY, a tokenized corporate bond fund on Ethereum and Solana.
- ▸The fund is structured as a U.K.-regulated OEIC and currently offers a 7% yield.
- ▸BNY provides tokenization and wallet infrastructure, with NatWest serving as depositary.
- ▸BAGEY enables direct onchain ownership and recourse for investors in U.K., Switzerland, and Cayman Islands.
Background
Baillie Gifford is a long-standing investment management firm that manages assets for institutional and private clients globally. An Open-Ended Investment Company (OEIC) is a common U.K. collective investment structure that allows for the pooling of investor capital into a diversified portfolio of assets, such as bonds or equities, while providing regulatory oversight.
Relevance
9/10