UK’s Baillie Gifford Brings Native Tokenized Fund to Ethereum
RWA Signal Insight
Active StrategiesUK-based investment manager Baillie Gifford has launched the Baillie Gifford Enhanced Yield Fund (BAGEY) natively on the Ethereum blockchain. This deployment marks a significant shift in RWA tokenization, as the blockchain serves as the legal register of record for investor ownership rather than relying on traditional transfer agents. By issuing the fund interests directly on-chain, the firm eliminates the need for separate off-chain record-keeping systems, which simplifies administration and enhances auditability. This move follows the firm's recent launch of a similar product on the Solana blockchain, signaling a broader strategy to integrate public infrastructure into regulated financial products. The BAGEY fund focuses on short-duration government and corporate bonds, utilizing the blockchain to streamline reconciliation and transparency. Unlike many existing tokenized products that act as wrappers for traditional funds, these tokens represent the actual fund interests themselves. This development underscores a growing trend among major asset managers to move beyond pilot programs toward live, regulated on-chain financial architecture.
Key points
- Baillie Gifford launched the BAGEY fund natively on Ethereum as the legal register.
- The fund invests in short-duration government and corporate bonds for institutional investors.
- Native on-chain issuance removes traditional administrative layers and improves auditability for regulated products.
- This follows the firm's recent deployment of a similar fund on the Solana blockchain.
Background
Baillie Gifford is a prominent independent investment management firm based in the UK with a long history of managing global assets. The firm has recently begun exploring public blockchain infrastructure to modernize the issuance and administration of its regulated investment products. By leveraging distributed ledger technology, they aim to replace legacy record-keeping systems with transparent, on-chain registries.