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