Baillie Gifford, one of the United Kingdom’s oldest and largest investment managers, has launched what it describes as the country’s first fully native UK-regulated tokenized bond fund on public blockchains. The new product, called the Baillie Gifford Enhanced Yield Fund (BAGEY), is issued directly on Ethereum and Solana, marking a significant step in the use of blockchain technology for regulated investment funds.
Founded 118 years ago, the Edinburgh-based firm manages approximately £ 286 mil millones ($ 377 mil millones) in assets. Unlike many tokenized investment products already on the market, BAGEY is designed so that la tecnología blockchain is part of the official ownership record rather than simply providing a digital representation of an existing fund.
The fund is structured as a UK-regulated Open-Ended Investment Company (OEIC) and invests in an actively managed portfolio of short-duration corporate bonds. According to Baillie Gifford, eligible investors can expect a target annual yield of around 7%, although returns are not guaranteed and remain subject to market conditions.
BNY is providing the tokenization and wallet infrastructure supporting the fund, while NatWest Trustee and Depositary Services serves as the depositary, maintaining the oversight and investor protections required under UK regulations.
Puntos Clave
Baillie Gifford has launched BAGEY, a UK regulated tokenized bond fund issued natively on the Ethereum and Solana blockchains.
Unlike most tokenized funds, BAGEY records investor ownership directly on public blockchains, making the blockchain part of the official ownership register.
The fund is structured as a UK regulated Open Ended Investment Company (OEIC), with BNY providing tokenization infrastructure and NatWest serving as the depositary.
The launch follows updated guidance from the UK’s Financial Conduct Authority, which allows authorized investment funds to use distributed ledger technology for ownership records.
The initiative marks another step in the institutional adoption of real world asset tokenization, demonstrating how blockchain can modernize fund administration while operating within existing regulatory frameworks.
More Than a Blockchain Wrapper
Most tokenized funds launched so far have placed digital tokens on top of traditional investment structures. In those cases, the legal ownership register remains within conventional financial systems, while the blockchain token merely represents an investor’s interest.
BAGEY adopta un enfoque diferente.
Baillie Gifford says the blockchain itself forms part of the official ownership register, meaning investor holdings are recorded natively on Ethereum and Solana instead of being mirrored from an off-chain database.
Theo Golden, Head of Digital Assets and Tokenization at Baillie Gifford, has argued that simply digitizing existing infrastructure does not fundamentally improve financial markets. The firm believes native issuance offers a stronger model because ownership records exist directly on public blockchain networks. The distinction may appear technical, but it has important implications. A native on chain register could eventually support faster settlement, improved transparency, and more efficient fund administration while remaining within an established regulatory framework.
Backed by Recent UK Regulatory Guidance
The launch comes after the UK’s Financial Conduct Authority introduced updated guidance allowing authorized investment funds to incorporate distributed ledger technology into their operations.
El FCA's PS26 / 7 política statement provides a framework for using blockchain-based ownership registers while maintaining existing investor protection standards. That regulatory clarity has encouraged several institutions to accelerate tokenization initiatives, but Baillie Gifford is among the first major asset managers to issue a regulated fund natively on public blockchain infrastructure.
BNY cree que este lanzamiento demuestra cómo la tokenización está dejando atrás los proyectos experimentales.
“This shows tokenization has moved from concept to real world application.”
The initiative also reflects growing collaboration between traditional financial institutions and blockchain infrastructure providers rather than competition between the two sectors.
Why Ethereum and Solana
Baillie Gifford selected both Ethereum and Solana to support the fund’s issuance.
Ethereum remains the blockchain líder for institutional tokenization thanks to its mature smart contract ecosystem and broad adoption among financial institutions. Solana complements it by offering significantly lower transaction costs and higher throughput, making it suitable for faster and more efficient transaction processing.
El uso de ambas redes permite al fondo beneficiarse de las fortalezas de cada ecosistema, al tiempo que ofrece a los inversores una mayor flexibilidad.
Que viene despues
While the launch represents an important milestone for tokenized real world assets, several questions remain unanswered.
Baillie Gifford has not yet demonstrated whether BAGEY units will eventually support secondary market trading, around the clock settlement, or broader use as collateral across financial markets. Those capabilities will depend on operational testing, market adoption, and continued regulatory development.
Actualmente, el fondo solo está disponible para inversores cualificados en el Reino Unido, Suiza y las Islas Caimán, lo que limita la participación inicial mientras se prueba el modelo en un entorno controlado.
Still, the significance of BAGEY extends beyond a single investment product. It demonstrates that a major traditional asset manager is prepared to place regulated fund ownership directly onto public blockchain infrastructure rather than using blockchain solely as a distribution tool.
A medida que las instituciones financieras continúan explorando los valores, bonos y otros activos del mundo real tokenizados, el lanzamiento de Baillie Gifford proporciona uno de los ejemplos más claros hasta la fecha de cómo la tecnología blockchain se está convirtiendo en parte de la base operativa de los fondos de inversión regulados, en lugar de simplemente coexistir con los sistemas existentes.
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