Scottish investment giant Baillie Gifford has entered the tokenized assets market with the launch of a new fixed-income fund built on Ethereum and Solana. Developed in partnership with global custodian BNY, the Baillie Gifford Enhanced Yield Fund gives eligible investors access to a professionally managed portfolio of corporate bonds while using blockchain technology as the official record-keeping system.
The fund is a UK-regulated Open-Ended Investment Company denominated in US dollars. It currently offers yields of approximately 7% and is initially available to eligible investors in the UK, Switzerland, and the Cayman Islands.
Unlike earlier tokenization efforts that only added digital wrappers to traditional products, Baillie Gifford states the new fund is issued directly on blockchain infrastructure. Investors’ ownership interests are recorded on-chain instead of relying solely on conventional back-office systems.
BNY provides tokenization and digital wallet infrastructure for the fund, while NatWest Trustee and Depositary Services oversee custody and depositary functions.
The launch demonstrates increasing institutional interest in real-world asset tokenization, a rapidly growing sector in the blockchain industry. Asset managers see blockchain to improve transparency, settlement speed, and investor access.
Executives at both firms describe the initiative as evidence that tokenization is advancing from experimentation to practical financial applications. Industry analysts often cite tokenized bonds, money market funds, and private credit products as promising blockchain use cases.
As regulatory clarity improves in major markets, traditional financial institutions are increasingly willing to bring established investment products onto public blockchain networks such as Ethereum and Solana. The Baillie Gifford launch further indicates that tokenized finance is becoming part of mainstream asset management.
A first for UK asset management.
Baillie Gifford’s (@BGDA_UK) Enhanced Yield Fund ($BAGEY) is the first publicly available, fully native UK-regulated tokenised fund launched on Solana, built with BNY.
Active fixed income. Native issuance. No wrapper. pic.twitter.com/Ig9GqwLn0F
— Capital Markets (@capitalmarkets) June 22, 2026
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