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