Baillie Gifford & BNY Launch UK's First Fully Native Tokenised Fund on Ethereum and Solana

The 118-year-old investment giant Baillie Gifford, in partnership with global custody leader BNY, has launched the Baillie Gifford Enhanced Yield Fund (BAGEY) – the first publicly available, fully native tokenised fund regulated in the United Kingdom .

A Fundamental Shift in Fund Structure

Unlike most tokenised products that merely wrap an existing fund in a digital layer, BAGEY is built differently. The token itself is the legal holding – there is no legacy infrastructure underneath .

"The Baillie Gifford Enhanced Yield Fund is not a token placed on top of a fund. It is a fund issued onchain, with the blockchain serving as the register of record. Investors hold the fund directly: direct ownership, direct recourse." — Theo Golden, Head of Digital Assets and Tokenisation at Baillie Gifford

Fund Details

Name Baillie Gifford Enhanced Yield Fund (BAGEY)
Structure UK-regulated Open-Ended Investment Company (OEIC)
Blockchains Ethereum and Solana
Asset Class Short-duration corporate bonds
Target Yield ~7%
Denomination US Dollar
Min. Investment $100
Availability Eligible investors in UK, Switzerland, Cayman Islands

BNY's Infrastructure Role

BNY, one of the world's largest custodians overseeing ~$59 trillion in assets, provides tokenisation and digital wallet infrastructure for the fund, while NatWest Trustee and Depositary Services acts as the fund's depositary .

"Tokenisation has moved from concept to real-world application, and this launch shows how regulated fund structures can evolve to meet the needs of a more digital, connected marketplace." — Katey Neate, BNY Global Head of Investor Solutions

Why Ethereum and Solana?

The dual-chain deployment addresses distinct investor needs :

· Solana – Lower transaction costs for smaller institutional and professional investors
· Ethereum – Deepest ecosystem of tokenised assets and institutional DeFi integrations

Regulatory Milestone

Both Baillie Gifford and BNY have been added to the FCA's register of crypto companies, following the FCA's PS26/7 policy statement confirming asset managers can use public DLT networks for fund registers .

This launch signals a major shift: traditional finance is no longer experimenting – it is building directly on public blockchains.

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