- Baillie Gifford has launched its first tokenized fund, the Baillie Gifford Enhanced Yield Fund ($BAGEY).
- The fund is a digitally native issuance on Ethereum and Solana, not a wrapper for an existing product.
- The asset manager’s “simple test” for tokenization is whether it improves outcomes for clients.
Baillie Gifford, a UK asset manager overseeing $237 billion, has launched its first publicly available tokenized fund. The Baillie Gifford Enhanced Yield Fund ($BAGEY) is an actively managed short-duration corporate bond fund issued natively on the Ethereum and Solana blockchains.
The firm explicitly avoided using a wrapper token that references an existing fund. This is because wrapper tokens can become out of sync with their underlying assets, especially when trading 24/7 against assets with traditional settlement hours. Consequently, a native issuance ensures the blockchain acts as the official book of records, so ownership moves instantly with the token.
In a blog post, head of digital assets Theo Golden outlined the company’s philosophy. “Does tokenisation improve the outcome for the client without weakening the proposition? If it doesn’t, we don’t do it,” he wrote. This client-first approach guided the decision to pursue a fully digital native structure from the outset.
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