A 118-year-old Edinburgh asset manager has placed a UK-regulated bond fund directly onto public blockchains. Baillie Gifford, with $260 billion under management, launched the Enhanced Yield Fund (BAGEY) in partnership with BNY. The fund issues investor shares natively on Ethereum and Solana rather than as wrapped representations. As a result, it stands as the first publicly available, fully native UK-regulated tokenized fund.
$BAGEY has launched on Solana.
— Solana (@solana) June 22, 2026
The Baillie Gifford (@BGDA_UK) Enhanced Yield Fund is the first publicly available, fully native UK-regulated tokenised fund issued onchain, settled in USDC, built with BNY.
Not a wrapper. The blockchain is the register of record. pic.twitter.com/jH1p55UY8q
A native fund, not a wrapper
Most tokenised funds today live as digital mirrors of existing products. Issuers create a token that represents a claim on shares held off-chain. The fund itself still relies on traditional registers, transfer agents, and reconciliation systems. As a result, the blockchain acts as a secondary record rather than the official one.
Baillie Gifford’s structure works differently. The fund issues BAGEY tokens directly as the investor’s holding in the vehicle. Ownership lives on Ethereum and Solana as the legal source of truth. Therefore, the blockchain serves as the register of record, not a representation of one.
Theo Golden, Head of Digital Assets and Tokenisation at Baillie Gifford, framed the distinction sharply. “It is a fund issued onchain, with the blockchain serving as the register of record,” he said. Investors hold the fund directly, with direct ownership and direct recourse.
Inside the Enhanced Yield Fund
The fund holds a portfolio of public corporate bonds with active management. Its yield currently sits near 7%, with two-year duration and an average BBB credit rating. As a result, investors gain exposure to short-duration fixed income without leaving the onchain environment. Daily dealing and a daily NAV anchor the structure to the standards of conventional regulated funds.
Eligible professional investors can mint and redeem fund tokens directly. They can use USDC stablecoins or traditional fiat to settle. Circle issues the USDC used at launch, and Baillie Gifford is itself an investor in Circle. Additionally, the minimum investment sits at just $100, lowering the entry barrier compared to typical institutional bond funds.
The fund denominates its share class in dollars and operates as a UK-regulated OEIC. Eligible investors in the UK, Switzerland, and Cayman Islands can access the product, subject to distribution rules. Importantly, the same structure supports continuous, programmable settlement on public blockchains.
BNY’s role in the infrastructure stack
BNY co-designed the product with Baillie Gifford as part of a long-running strategic relationship. The bank provides the tokenisation and wallet infrastructure that supports direct issuance and redemption. Meanwhile, NatWest Trustee and Depositary Services Limited acts as the fund’s Depositary. Together, these partners replicate the fiduciary safeguards expected from a UK-regulated investment vehicle.
Katey Neate, BNY’s Global Head of Investor Solutions, said the model proves regulated structures can evolve onchain. “Tokenisation has moved from concept to real-world application,” she said. Notably, BNY frames the partnership as a global blueprint for issuing and servicing traditional assets on blockchain rails. The direct issuance model also reduces operational complexity, since there is no separate legacy register to reconcile.
How BAGEY compares to BUIDL and FOBXX
Tokenised fixed-income funds have grown quickly since 2024. BlackRock’s BUIDL crossed $2.5 billion in total asset value by late May 2026. Similarly, Franklin Templeton’s FOBXX product reached roughly $2.47 billion through its BENJI token. However, both products represent existing fund shares onchain rather than issuing units natively.
BAGEY shifts the model. The token itself is the share, not a digital wrapper holding a claim. As a result, the blockchain ledger absorbs the role traditionally held by transfer agents and centralised registers. This structural step distinguishes BAGEY from the broader cohort of tokenised money market funds.
Why UK regulation matters here
The UK Digital Securities Sandbox opened in September 2024 under the Bank of England and FCA. It allows firms to test the issuance, trading, and settlement of tokenised securities within a live regulatory perimeter. Importantly, the sandbox accommodates both natively digital and wrapped issuances. Sixteen firms had progressed past the first stage as of recent regulator updates.
Baillie Gifford’s launch sits within that wider UK push toward digital market infrastructure. The OEIC wrapper applies traditional UK fund law to a product issued and held onchain. Therefore, the fund operates under the same investor protections as any other regulated UK vehicle. Moreover, the cross-border distribution into Switzerland and the Cayman Islands extends the precedent beyond a single jurisdiction.
What it signals for tokenised finance
The total real-world asset market crossed $32 billion in May 2026. Tokenised Treasuries alone reached roughly $14.79 billion by mid-June. Against that backdrop, an actively managed credit product issued natively under UK law raises the technical bar. Furthermore, it shows that mainstream fund managers can adopt public blockchains without departing from regulated frameworks.
Stuart Dunbar, Partner at Baillie Gifford, framed the move as a long-term commitment. He described tokenisation as an integral evolution rather than a short-term theme. Additionally, he emphasised that the firm pursued the launch with clients in mind, not commercial speed. The decision to deploy on both Ethereum and Solana also signals confidence in multi-chain liquidity for institutional products.
For investors and builders, the takeaway is concrete. Native issuance pushes the blockchain from a representation layer to a recordkeeping layer. Consequently, fund mechanics, settlement, and ownership records all converge on a single ledger. That convergence is what makes tokenised finance more than a marketing exercise.
*Disclaimer: News content provided by Genfinity is intended solely for informational purposes. While we strive to deliver accurate and up-to-date information, we do not offer financial or legal advice of any kind. Readers are encouraged to conduct their own research and consult with qualified professionals before making any financial or legal decisions. Genfinity disclaims any responsibility for actions taken based on the information presented in our articles. Our commitment is to share knowledge, foster discussion, and contribute to a better understanding of the topics covered in our articles. We advise our readers to exercise caution and diligence when seeking information or making decisions based on the content we provide.
