Baillie Gifford Launches Tokenized Bond Fund on Ethereum and Solana With BNY

Baillie Gifford, the Edinburgh-based investment manager, has launched the Baillie Gifford Enhanced Yield Fund, a tokenized fixed-income fund developed with BNY. The dollar-denominated fund uses the Ethereum and Solana public blockchains and offers eligible investors exposure to an actively managed, short-duration portfolio of public corporate bonds.

The launch matters because it places a long-established traditional finance firm more directly into the market for tokenized real-world assets. Rather than simply adding a digital layer to an existing fund, Baillie Gifford said the blockchain will serve as the fund’s register of record, meaning investors hold the fund directly through the on-chain structure.

The fund operates through a U.K.-regulated Open-Ended Investment Company, or OEIC, a collective investment structure commonly used to pool investor capital across assets such as equities or bonds. CoinDesk reported that the fund currently offers a yield of around 7%, and that access will be limited to eligible investors in the U.K., Switzerland and the Cayman Islands, subject to local laws and distribution restrictions.

BNY will provide tokenization and wallet infrastructure for the product. NatWest Trustee and Depositary Services will act as the fund’s depositary, adding a familiar institutional framework around the on-chain issuance model.

The move adds to the broader institutional push to bring real-world assets onto public blockchains. For Ethereum and Solana, the launch is another example of regulated financial products being built on public networks, while for fund managers it highlights how tokenization is moving from pilots toward live investment structures.