Baillie Gifford puts fund ownership on Ethereum in tokenization push

What's the deal? Baillie Gifford has launched its Enhanced Yield Fund (BAGEY) natively on Ethereum, using the blockchain as the legal register of record for investor ownership. The UK-based asset manager announced the move on July 7, 2026. The fund holds short-duration government and corporate bonds.

Why now? The launch comes less than a month after Baillie Gifford deployed a similar native on-chain yield fund on Solana on June 22. That version let investors subscribe and redeem fund units directly using stablecoins, focusing on accessibility through blockchain-based settlement.

What's the endgame? The Ethereum version goes further, placing the ownership register itself on-chain rather than in a conventional off-chain database. Unlike tokenized products that issue tokens representing claims on a traditional fund, Baillie Gifford said the Ethereum-based tokens constitute the fund interests themselves.

What's the product? The structure removes several layers of traditional fund administration by making the blockchain the legal register, replacing conventional transfer agents and separate record-keeping systems. According to Ethereum Institutional, recording ownership directly on-chain can improve transparency, simplify reconciliation, and enhance auditability for regulated products. "This is not a wrapper over a traditional fund; native on-chain issuance means the token is the fund's interest itself," it said.

What could go wrong? Placing a UK-regulated fund's legal ownership register on a public blockchain is a structural precedent, and it must hold up to existing financial regulation and audit standards over time.

The signal: Tokenized investment products are moving beyond pilots into live, regulated offerings. Coinbase has partnered with SpikoDealroom has a profile for this one. Try Dealroom → to enable round-the-clock access to tokenized European money market funds, and Ondo FinanceDealroom has a profile for this one. Try Dealroom → has rolled out 24/7 minting and redemption for tokenized US stocks and ETFs. Baillie Gifford's launch shows traditional firms testing public blockchains not just as a distribution channel, but as core fund infrastructure.

Read more: Crypto Times