Baillie Gifford, a 118-year-old investment firm based in the Scottish capital of Edinburgh, has unveiled a tokenized fixed income fund in partnership with global custody giant BNY, the companies said on Monday.
Baillie Gifford Enhanced Yield Fund (BAGEY) is dollar-denominated and provides eligible investors with access to an actively managed, short-duration public corporate bond portfolio using the Ethereum and Solana public blockchains, according to a press release.
The fund operates through a UK-regulated open-ended investment company (OEIC), a type of collective investment fund structured as a limited liability company that distributes the capital of multiple investors across shares or bonds.
The fund, which currently offers a yield of around 7%, will be available to eligible investors in the United Kingdom, Switzerland and the Cayman Islands, subject to applicable laws, regulations and distribution restrictions.
Real-world asset (RWA) tokenization has taken the traditional financial world by storm, but simply wrapping legacy infrastructure in a digital layer will not fundamentally improve finance, said Theo Golden, head of digital assets and tokenization at Baillie Gifford.
