Baillie Gifford and BNY Launch Tokenized Bond Fund on Ethereum and Solana
Baillie Gifford, a 118-year-old investment firm, announced the launch of the Baillie Gifford Enhanced Yield Fund (BAGEY), a tokenized fixed-income fund in partnership with BNY. The fund is denominated in USD and offers access to an actively managed, short-duration portfolio of public corporate bonds using Ethereum and Solana blockchains. It operates under a U.K.-regulated OEIC structure, allowing direct onchain ownership without traditional intermediaries. The fund offers around 7% yield and is available to eligible investors in the U.K., Switzerland, and Cayman Islands. BNY provides tokenization and wallet infrastructure, while NatWest serves as depositary. Both firms were added to the FCA's list of registered crypto companies, signaling regulatory compliance. Theo Golden, head of digital assets at Baillie Gifford, emphasized that the fund is issued onchain, not just tokenized on top of existing structures. This launch marks a significant step in the tokenization of real-world assets, bridging traditional finance with blockchain technology.
Key facts
- BAGEY is a tokenized bond fund on Ethereum and Solana, offering ~7% yield.
- Fund operates under U.K.-regulated OEIC structure with direct onchain ownership.
- BNY provides tokenization infrastructure; NatWest serves as depositary.
- Available to eligible investors in U.K., Switzerland, and Cayman Islands.
- Both Baillie Gifford and BNY added to FCA's crypto company register.