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117-Year-Old Firm Tokenizes UK Fund
23 Jun
Summary
- A 117-year-old firm launched a fully native tokenized bond fund.
- The fund operates on Ethereum and Solana, using blockchain as infrastructure.
- Investors directly own fund tokens, offering direct recourse.
Baillie Gifford, an independent asset manager founded in 1908, has launched the Baillie Gifford Enhanced Yield Fund (BAGEY), a regulated bond fund tokenized on public blockchains Ethereum and Solana. This initiative represents a pioneering effort to integrate traditional finance with on-chain infrastructure, as the fund operates as a fully native token rather than a wrapper around an existing product.
The BAGEY fund is a short-duration fixed income investment, primarily holding corporate bonds with shorter maturities and lower associated risks. Denominated in U.S. dollars, it currently offers an approximate 7% yield, features a two-year duration, and maintains an average credit quality of BBB. The fund is structured for daily dealing, allowing investors to buy and redeem positions daily.
BNY, a major financial services company, provides the tokenization and wallet infrastructure for BAGEY, with NatWest Trustee and Depositary Services Limited acting as the fund's depositary. Eligible professional investors in the UK, Switzerland, and the Cayman Islands can access the fund, with a minimum investment of $100. Investors have the flexibility to fund their positions using either USDC stablecoins or traditional fiat currency, leveraging Baillie Gifford's extensive experience in bond strategies.
