Baillie Gifford unveils tokenized bond fund on blockchain

Baillie Gifford launches BAGEY, a tokenized bond fund on Solana and Ethereum, offering direct on-chain ownership, USDC settlement, and a targeted 7% yield from short-term corporate bonds.

Baillie Gifford has introduced the Enhanced Yield Fund (BAGEY), a tokenized bond fund natively issued on the Solana and Ethereum blockchains in collaboration with BNY. Structured as a UK-regulated open-ended investment company, BAGEY targets an expected yield of around 7% through an actively managed portfolio of short-term corporate bonds. Unlike traditional tokenized funds that rely on wrappers, BAGEY is issued directly on-chain, with the blockchain acting as the official register of record. This enables investors to hold direct ownership and rights via the token. The fund settles in USDC and leverages BNY's infrastructure to provide institutional and qualified investors with exposure to corporate bonds through blockchain technology. This launch represents a significant advancement in merging traditional finance with blockchain, offering enhanced efficiency, transparency, and faster settlement for fixed-income products.