Baillie Gifford Launched Tokenized Bond Fund BAGEY
The asset manager introduced a blockchain-based fund targeting a 7% yield for professional investors.
Updated on Sept. 29, 2026 in Investing
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On June 22, 2026, Baillie Gifford debuted the BAGEY fund, an actively managed, short-duration bond portfolio issued natively on the Ethereum and Solana blockchains. The fund offers professional investors access to a mix of public corporate and government debt.
Why it matters
By leveraging blockchain technology for its legal register of ownership, the fund aims to modernize traditional asset management through daily net asset value calculations and digital settlement processes.
The BAGEY fund targets an annual yield of approximately 7% with an average credit quality rating of BBB. The portfolio maintains a two-year duration and requires a minimum investment of $100.
The players
Baillie Gifford
This 118-year-old investment management firm based in Edinburgh oversees between $237 billion and $260 billion in assets.
BitGo Bank & Trust
This firm provides custody and digital asset infrastructure to support the fund's tokenization process.
BNY
Formerly known as Bank of New York Mellon, this global financial services institution provides custody services for the fund.
Anchorage Digital
This regulated digital asset platform serves as a custodian for the tokenized assets within the fund structure.
Archax
This regulated digital asset exchange and brokerage provides necessary technical infrastructure for the fund's tokenization.
The details
Shares are minted directly on public blockchains, which function as the official legal register, while settlement is facilitated through USDC or fiat currencies. Custodial and tokenization services are provided by BitGo Bank & Trust, BNY, Anchorage Digital, and Archax.
Timeline
The BAGEY fund officially launched on June 22, 2026.
Availability expanded to Switzerland, Hong Kong, and the Cayman Islands on September 29, 2026.
Market Dynamics
The shift toward native blockchain issuance marks a significant evolution in traditional asset management, moving away from legacy record-keeping systems. This adoption of Ethereum and Solana blockchain tokenization standards signals a shift in how legacy firms execute legal registries.
Professional investors can access the fund with a minimum requirement of $100, significantly lowering the barrier for entry into institutional-grade bond strategies. The use of digital settlement allows for a more streamlined investment process compared to traditional multi-day settlement cycles.
The takeaway
The move demonstrates how institutional firms are integrating decentralized ledger technology into their existing bond portfolios. Investors should note that while this tokenization improves accessibility and settlement speed, the underlying assets remain subject to credit quality risks like those seen in traditional BBB-rated funds.
Further reading
For more on the evolution of digital asset strategies, visit our section on Investing.
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Would you consider investing in bond funds issued natively on blockchain networks?
