Baillie Gifford Launches UK's First Native Tokenised Fund

The Baillie Gifford Enhanced Yield Fund (BAGEY) is a short-duration fixed income fund that invests in corporate bonds. This fund is unique because it's issued on a public blockchain, with the token itself being the fund holding.

This means investors own the fund directly through tokens issued on a blockchain, which serves as the legal record of ownership. Unlike other tokenized funds, BAGEY doesn't wrap an existing product in a digital layer, the underlying infrastructure is actually the blockchain.

Baillie Gifford partnered with BNY to launch this fund, which runs on both Ethereum and Solana. The decision to build on these two blockchains was deliberate, as they offer fast transaction processing and deep ecosystems of tokenized assets.