Baillie Gifford has unveiled a new fixed-income tokenized fund named the Enhanced Yield Fund (BAGEY), in collaboration with BNY, a leader in global custody services. This fund, structured as a U.K.-regulated Open-Ended Investment Company (OEIC), provides eligible investors with access to a portfolio of short-duration public corporate bonds denominated in U.S. dollars.
The fund leverages blockchain technology from both Ethereum and Solana, marking a significant move in the financial sector's ongoing trend of tokenizing real-world assets. Currently, BAGEY offers a yield of around 7% and is set to be available to investors in the U.K., Switzerland, and the Cayman Islands, subject to local regulations.
The tokenization process and wallet infrastructure for BAGEY will be managed by BNY, while NatWest Trustee and Depositary Services will act as the fund's depositary. According to Theo Golden, Baillie Gifford’s head of digital assets, this fund goes beyond merely applying digital layers over traditional structures; it is designed to be fully integrated on-chain, granting investors direct ownership and rights.
