Key Highlights
- Baillie Gifford has launched its Enhanced Yield Fund natively on Ethereum.
- Ethereum serves as the fund’s legal register of record rather than an off-chain ownership database.
- The fund holds short-duration government and corporate bonds.
Baillie Gifford, an independent investment management firm, has expanded its tokenized fund strategy by launching the Baillie Gifford Enhanced Yield Fund (BAGEY) on Ethereum, marking its second public blockchain deployment less than a month after introducing a similar product on Solana.
In a detailed X post on Tuesday, the UK-based asset manager said the new version is issued natively on Ethereum, with the blockchain serving as the legal register of record for investor ownership instead of relying on conventional transfer agents or separate record-keeping systems.
The launch adds to the growing use of public blockchain infrastructure by traditional asset managers as tokenized real-world assets continue to gain traction.
From Solana to Ethereum
The Ethereum launch follows Baillie Gifford’s June 22 rollout of its native on-chain yield fund on Solana, where investors could subscribe and redeem fund units directly using stablecoins. That launch focused on improving fund accessibility through blockchain-based settlement.
The Ethereum version goes a step further by placing the ownership register itself on-chain, making Ethereum the official record of investor holdings. According to the firm, the fund invests in short-duration government and corporate bonds while using blockchain infrastructure to simplify administration.
Ownership moves on-chain
A key feature of the new fund is that ownership is recorded directly on Ethereum rather than through traditional off-chain registries. Unlike many tokenized investment products that issue blockchain tokens representing claims on a conventional fund, Baillie Gifford said the Ethereum-based tokens constitute the fund interests themselves.
Commenting on the launch, Ethereum Institutional said the structure removes several layers of traditional fund administration by making the blockchain the legal register of record. “This is not a wrapper over a traditional fund; native on-chain issuance means the token is the fund’s interest itself.”
The organization added that recording ownership directly on Ethereum, rather than maintaining separate databases, can improve transparency, simplify reconciliation, and enhance auditability for regulated investment products.
According to the group, the launch also demonstrates that regulated financial products can operate securely on public blockchain infrastructure without relying on private or permissioned networks.
Tokenized funds continue to evolve
The launch comes as tokenized investment products move beyond pilot programs into live, regulated offerings. Asset managers have increasingly explored blockchain technology to modernize fund issuance, settlement, and investor record-keeping, while maintaining compliance with existing financial regulations.
Recent developments include Coinbase’s partnership with Spiko to enable round-the-clock access to tokenized European money market funds and Ondo Finance’s rollout of 24/7 minting and redemption for tokenized U.S. stocks and ETFs.
Baillie Gifford’s latest launch adds another example of how traditional financial firms are testing public blockchain infrastructure, not just as a distribution channel, but as part of the underlying architecture supporting regulated investment products.
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