Baillie Gifford launches tokenised bond fund with 7% yield, $100 minimum
What's the deal? Baillie Gifford, the UK investment manager with $260 billion in assets, has opened its Enhanced Yield Fund (BAGEY) to accredited investors in Singapore. The fund is a US dollar-denominated, UK-regulated OEIC that invests in government and corporate bonds, currently yielding around 7% with a minimum investment of $100.
What's the endgame? BAGEY is a fully native tokenised fund: rather than wrapping a digital token around an existing product, it issues tokens directly as the investor's holding, with the blockchain serving as the legal record of ownership. Baillie Gifford says this brings actively managed fixed income onchain, moving tokenisation beyond the money-market products that have dominated so far.
How does it work? The fund carries around two years' duration and an average credit quality of BBB. It deploys first on EthereumDealroom has a profile for this one. Try Dealroom →, with Solana to follow, and currently supports the USDCDealroom has a profile for this one. Try Dealroom → stablecoin. Investors can mint and redeem using stablecoins or fiat, with daily dealing, an indicative net asset value every 15 minutes, and T+0 redemptions in USDC for up to 10% of the fund's value.
Why now? Singapore has become a leading centre for institutional digital finance, with asset managers, banks, family offices, and regulators testing blockchain across financial markets. Baillie Gifford, founded in 1908, is targeting investors already operating onchain as well as professionals seeking traditional strategies through digital infrastructure.
Where else? Beyond Singapore, BAGEY is available to eligible accredited or professional investors in the UK, Switzerland, Hong Kong, and the Cayman Islands, who can hold it through participating digital custodians, subject to local rules and distribution restrictions.
The signal: A 117-year-old asset manager issuing an actively managed bond fund natively on-chain marks a step beyond the tokenised money-market funds that have defined the market. It suggests traditional managers are starting to treat blockchain as core infrastructure for fixed income, not just a wrapper for cash-like products.
Read more: caproasia.com
Image credit: degas.degas
