Baillie Gifford Launches UK First Fully Tokenized Bond Fund on Blockchain
Private Credit
Baillie Gifford has launched the Baillie Gifford Enhanced Yield Fund (BAGEY), marking the United Kingdom's first fully native tokenized bond fund. Unlike traditional tokenized products that overlay digital wrappers on existing assets, BAGEY is issued directly on the Ethereum and Solana blockchains, which serve as the official register of record. This structural shift eliminates legacy infrastructure, providing investors with direct ownership and recourse through onchain tokens. The short-duration fixed income fund targets corporate bonds with a two-year duration and an average credit quality of BBB. Investors can access the daily-dealt fund with a minimum investment of $100, utilizing either fiat currency or USDC stablecoins. Partnering with BNY for tokenization and wallet infrastructure, the firm aims to modernize asset management by leveraging blockchain as the primary ledger. This development represents a significant milestone for the RWA market by demonstrating a fully onchain, regulated investment vehicle.
Key points
- ▸BAGEY is the UK's first fully native tokenized bond fund on Ethereum and Solana.
- ▸The fund offers approximately 7% yield with a two-year duration and BBB credit quality.
- ▸Investors can participate with a $100 minimum using fiat or USDC stablecoins.
- ▸BNY provides the essential tokenization and wallet infrastructure for the fund's operations.
Background
Baillie Gifford is an independent investment management firm founded in 1908. The firm specializes in long-term investment strategies and has recently expanded into digital assets to modernize how financial products are issued and managed.
Relevance
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