Baillie Gifford Launches Regulated Tokenized Fund on Ethereum and Solana

UK-based investment manager Baillie Gifford has launched a regulated tokenized fund on Ethereum and Solana, marking a significant shift in the industry. The fund, which is part of the UK's authorized fund framework, uses native issuance to record ownership on public blockchains.

The launch is a major milestone for tokenization, as it demonstrates that regulated funds can live natively on public chains rather than relying on blockchain-wrapped versions of existing products. Baillie Gifford's digital assets material frames tokenization as an upgrade to ownership records, settlement, access, and client outcomes.

The fund is structured as a UK-regulated OEIC (Open-Ended Investment Company) with issuance on Ethereum and Solana, utilizing BNY's tokenization and wallet infrastructure. NatWest Trustee and Depositary Services acts as the depositary for the fund.

This development follows the UK's move to approve tokenizing FCA-authorized investment funds in April 2023. The Financial Conduct Authority published PS26/7 on fund tokenization, setting out how authorized fund managers can use distributed ledger technology within the existing authorized fund framework.