What to know:
- Baillie Gifford launched BAGEY on Ethereum as its legal investor ownership register.
- Ethereum-based BAGEY tokens represent fund interests rather than claims on a wrapper.
- The tokenized fund uses public blockchain infrastructure to simplify administration.
Baillie Gifford has created the Baillie Gifford Enhanced Yield Fund on Ethereum. The UK investment manager said the tokenized fund is issued natively on the network. Ethereum now acts as the legal register of record for investor ownership.
Baillie Gifford is a UK-based independent investment manager. With the Ethereum launch, the firm said it marks the latest in its tokenized fund offering, following its recent Solana deployment. This transfer brings another public blockchain product to its on-chain investment portfolio.
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Ethereum Became BAGEY Ownership Register
In a post on X, the UK-based asset manager said BAGEY’s new version is directly released on Ethereum. According to Baillie Gifford, the blockchain eliminates the need for the traditional transfer agent and an independent investor’s ownership record-keeping system. This makes Ethereum the official ownership register for the fund.
It follows a similar product release on Solana by investment firm Baillie Gifford less than a month ago. The Solana version was rolled out on June 22. With that product, investors could subscribe and redeem fund units directly with stablecoins.
Why Tokenized Fund Targets Administration
The Ethereum version goes beyond blockchain-based settlement. According to the statement from Baillie Gifford, BAGEY focuses on short-term government and corporate bonds and will leverage blockchain infrastructure to streamline administration. The tokenized fund structure also puts ownership records directly on a public network.
One of the important parts is the legal status of the Ethereum tokens. The tokens are not just claims to a “traditional product,” said Baillie Gifford. Rather, the tokens, which are based on the Ethereum blockchain, represent the fund interests themselves.
How Ethereum Institutional Described the Structure
Ethereum Institutional explained that the launch eliminates some of the conventional administration layers. It said native on-chain issuance means the token is the fund interest, not a wrapper around one. The group pointed out that the model can enhance transparency, reconciliation, and auditability.
Ethereum Institutional, regulated financial products can run on public blockchain infrastructure. In this instance, the group said private or permissioned networks are not necessary. The tokenized fund launch is seen in the context of a broader interest in public chains among institutional investors.
The launch coincides with the transition of tokenized investment products from pilot to live regulated product. Coinbase has teamed up with Spiko to enable access to tokenized European money market funds around the clock. Ondo Finance has announced 24/7 minting and redemption for tokenized US stocks and ETFs.
The Ethereum rollout by Baillie Gifford is an example of conventional finance piloting public blockchains beyond the distribution layer. The firm is using Ethereum as part of the fund’s operating structure. With its newest tokenized fund, it provides a real-world illustration of investor ownership records on-chain.
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