Hong Kong greenlights first fully native tokenized fund

The Hong Kong Securities and Futures Commission has authorized the Baillie Gifford Enhanced Yield Fund (BAGEY), marking the city's first fully native tokenized fund for professional investors. Unlike traditional tokenized products that merely wrap existing funds, BAGEY is issued directly on the Ethereum and Solana blockchains, which serve as the official ownership registers. The actively managed fixed-income fund focuses on short-duration government and corporate bonds, currently offering a yield of approximately 7% with an average BBB credit rating. Developed in collaboration with BNY, the fund aims to enhance operational efficiency, transparency, and settlement speed while maintaining strict regulatory standards. NatWest Trustee and Depositary Services serves as the fund's depositary, ensuring robust governance for the onchain structure. This launch represents a significant milestone for Hong Kong's ambition to become a global tokenization hub by proving that regulated investment products can successfully utilize blockchain as primary infrastructure. By prioritizing direct onchain ownership, Baillie Gifford is setting a new standard for how institutional-grade assets can be managed and held in increasingly digital financial markets.