UK asset manager launches tokenized bond fund on Solana and Ethereum

UK asset manager Baillie Gifford has announced the launch of the Baillie Gifford Enhanced Yield Fund (BAGEY), a tokenized bond fund built on Solana (SOL) and Ethereum (ETH) in collaboration with global custodian BNY. The U.S. dollar-denominated fund offers investors exposure to an actively managed portfolio of short-term corporate bonds, with a current expected yield of around 7%. Theo Golden, Baillie Gifford's Head of Digital Assets and Tokenization, explained that BAGEY is not a token wrapper on an existing fund but is issued directly on the blockchain, allowing investors to hold the fund and its rights directly. BNY provides the tokenization and wallet infrastructure for the fund, which operates as a UK-regulated open-ended investment company (OEIC).