Baillie Giffford launches native tokenized fund in Hong Kong
Active Strategies
Baillie Gifford has received authorization from the Hong Kong Securities and Futures Commission (SFC) for the Baillie Gifford Enhanced Yield (BAGEY) fund, a fully native tokenized investment vehicle. Unlike traditional tokenized funds that utilize wrappers or special purpose vehicles, BAGEY is issued directly on public blockchain infrastructure, where the token serves as the official record of ownership. This actively managed portfolio focuses on short-duration government and corporate bonds, marking a significant expansion of Hong Kong's tokenized fixed income market. Developed in collaboration with BNY, the fund utilizes BNY’s tokenization and wallet infrastructure to eliminate the need for parallel record-keeping. By establishing the blockchain as the legal source of truth, the structure aims to enhance transparency and reduce operational complexity for professional investors. This development aligns with the Hong Kong Monetary Authority’s Fintech 2030 strategy and Project Ensemble, reinforcing the region's position as a hub for regulated digital assets. The launch represents a shift toward native issuance models that prioritize direct on-chain ownership over legacy intermediary structures.
Key points
- ▸BAGEY is a natively issued tokenized fund for professional investors authorized by the SFC.
- ▸BNY provides the tokenization and wallet infrastructure for the fund's direct issuance model.
- ▸NatWest Trustee and Depositary Services Limited serves as the fund's official depositary.
- ▸The fund utilizes public blockchain infrastructure as the legal record of investor ownership.
Background
Baillie Gifford is a global investment management firm known for its long-term, active management approach across various asset classes. The firm has increasingly focused on digital asset integration, aiming to modernize fund distribution and ownership through blockchain technology. By partnering with established financial institutions like BNY, they seek to bridge traditional asset management standards with the efficiency of decentralized ledger technology.
Relevance
8.5/10