TradFi Giant Baillie Gifford Debuts Onchain Fund With BNY

TLDR

• Baillie Gifford launched the Baillie Gifford Enhanced Yield Fund (BAGEY) on Ethereum and Solana.
• The fund provides access to an actively managed portfolio of short-duration corporate bonds.
• BAGEY operates through a U.K.-regulated Open-Ended Investment Company (OEIC) structure.
• The fund is denominated in U.S. dollars and currently offers an approximate 7% yield.
• Eligible investors in the U.K., Switzerland, and the Cayman Islands can access the product.

Baillie Gifford has launched a tokenized fixed-income fund using the Ethereum and Solana blockchains. The Edinburgh-based asset manager introduced the product with support from BNY. The fund offers eligible investors access to a short-duration corporate bond portfolio and currently targets a yield near 7%.

TradFi Fund Expands Access Through Public Blockchains

Baillie Gifford unveiled the Baillie Gifford Enhanced Yield Fund, known as BAGEY, on Monday. The fund operates through a U.K.-regulated Open-Ended Investment Company structure.

The product is denominated in U.S. dollars and invests in public corporate bonds. It also provides exposure through an actively managed short-duration strategy. Eligible investors in the U.K., Switzerland, and the Cayman Islands can access the fund, subject to local rules.

Baillie Gifford said the fund uses both Ethereum and Solana as its blockchain infrastructure. The company stated that investors gain direct ownership of fund units through onchain records.

Theo Golden, head of digital assets and tokenization at Baillie Gifford, described the structure in a statement. He said the blockchain functions as the official register for the fund.

He added that the fund itself exists onchain and records ownership directly through blockchain technology.

BNY Provides Infrastructure for New Digital Fund

BNY will supply tokenization services and wallet infrastructure for the fund. NatWest Trustee and Depositary Services will serve as the fund’s depositary.

The companies said the structure combines regulated fund operations with blockchain-based ownership records. As a result, investors hold interests directly through the onchain framework.

Golden said the design differs from tokenized wrappers that sit above traditional systems. He stated that investors receive direct ownership and direct recourse through the fund structure.

BNY highlighted the launch as an example of regulated products moving onto blockchain networks. The bank said tokenization now supports operational use cases within existing investment frameworks.

She added that regulated fund structures can evolve for a more digital marketplace.

The launch marks a partnership between a long-established asset manager and a global custody provider. The fund currently offers a yield of about 7%, according to the companies.

Baillie Gifford and BNY confirmed that the fund records ownership on public blockchains. Ethereum and Solana support the product’s onchain infrastructure and investor registry.

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