#HongKongSFC

Baillie Giffford launches native tokenized fund in Hong Kong

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.

fundselectorasia.com·3h ago