Baillie Gifford has unveiled the Baillie Gifford Enhanced Yield Fund (ticker $BAGEY), a tokenized corporate bond product launched natively on Solana and Ethereum, becoming the first UK‑regulated fund fully issued on public blockchains.
Fund Architecture and Tokenization
The fund aims to generate approximately 7 percent annual yield through active fixed‑income management, according to a CoinDesk report released on Monday. Baillie Gifford’s digital‑assets division, BGDA, described the offering as an on‑chain bond fund where the blockchain serves as the definitive source of truth. BNY Mellon supplies the tokenisation framework and wallet infrastructure, ensuring compliance with UK regulatory standards.
Unlike most tokenized funds that rely on a wrapper token representing a claim on an off‑chain register, $BAGEY’s token itself constitutes the legal ownership record. Subscriptions and redemptions are settled directly in USDC on the blockchain, and Solana’s official account confirmed that “the blockchain is the register of record,” emphasizing the absence of a wrapper layer.
Investor and Market Implications
The architecture eliminates the traditional transfer‑agent intermediary, allowing ownership transfers to settle