BlockBeats News, June 22nd - Scottish Edinburgh-based old-school asset management company Baillie Gifford (established for over 118 years) announced a partnership with global custody giant BNY on Monday to launch a tokenized fixed income fund — Baillie Gifford Enhanced Yield Fund (BAGEY), simultaneously deployed on the Ethereum and Solana blockchains.

The fund, denominated in USD, operates through an open-ended investment company (OEIC) structure under the UK regulatory framework, targeting eligible investors from the UK, Switzerland, and the Cayman Islands. It provides an actively managed short-duration corporate bond portfolio with a current yield of approximately 7%.

Differing from most tokenized products in the market, Baillie Gifford's Digital Assets Lead, Theo Golden, emphasized that BAGEY is not wrapping a traditional fund in a token shell but is a fund issued directly on-chain, where the blockchain itself serves as the register of ownership. Investors hold shares directly and have direct recourse.

BNY will provide tokenization and wallet infrastructure for the fund, with NatWest Trustee and Custodial Services acting as the fund custodian. The Global Head of BNY Investor Solutions stated that this issuance marks the transition of tokenization from concept to real-world application, as regulated fund structures move towards a more digital, interconnected market evolution.