Established asset management firm Baillie Gifford teams up with BNY to launch an on-chain fixed income tokenization fund, deploying on both Ethereum and Solana blockchains

BlockBeats News, June 22 — Scotland’s long-established asset management firm Baillie Gifford (founded over 118 years ago) and global custody giant BNY announced jointly on Monday the launch of a tokenized fixed income fund — the Baillie Gifford Enhanced Yield Fund (BAGEY), deployed on both the Ethereum and Solana blockchains.

This fund, denominated in US dollars, operates under the UK regulatory framework through an open-ended investment company (OEIC) structure, targeting qualified investors in the UK, Switzerland, and the Cayman Islands, offering an actively managed short-duration corporate bond portfolio with a current yield of approximately 7%.

Unlike most tokenized products on the market, Theo Golden, Head of Digital Assets at Baillie Gifford, emphasized that BAGEY is not just a traditional fund wrapped in a token, but a fund directly issued on the blockchain, where the blockchain itself serves as the register of rights, and investors hold shares directly with direct recourse.

BNY will provide tokenization and wallet infrastructure for the fund, with NatWest acting as the fund’s custodian and trustee. The Head of Global Client Solutions at BNY stated that this issuance marks the transition of tokenization from concept to real application, with regulated fund structures evolving towards a more digital and interconnected market.