SFC authorises Baillie Gifford's natively tokenised bond fund on Ethereum and Solana

Hong Kong’s Securities and Futures Commission (SFC) has authorised Baillie Gifford’s Enhanced Yield Fund (BAGEY), an actively managed short-duration bond portfolio issued natively on public blockchains. Developed in partnership with BNY, the fund is available to professional investors on both Ethereum and Solana, and is structured as a UK-regulated open-ended investment company (OEIC) denominated in US dollars.

The structural distinction matters operationally. Unlike tokenised funds that wrap a conventional share class in a digital envelope, BAGEY is digitally native: the token itself constitutes the investor’s legal holding and the blockchain is the primary record of ownership, removing the need for parallel register maintenance. That architecture collapses a layer of administrative overhead that most existing tokenised fund structures still carry.

On the liquidity side, eligible investors can subscribe and redeem in either fiat currency or USDC stablecoins, with same-day redemptions supported for up to 10% of net asset value. The fund also publishes an indicative net asset value to support secondary market trading. Together, these features suggest Baillie Gifford and BNY are targeting institutional allocators who want yield-bearing, liquid collateral with on-chain settlement rather than simply blockchain-flavoured access to a conventional fund.