Baillie Gifford launches BAGEY, a tokenized bond fund settling in USDC or fiat

Baillie Gifford, the Edinburgh-based asset manager overseeing roughly $237B to $260B in assets, has launched its Enhanced Yield Fund, ticker BAGEY, as a fully on-chain tokenized bond product. The fund is issued natively on Ethereum and Solana, settles in USDC or fiat, and targets a yield of approximately 7%. How BAGEY actually works The fund is an actively managed short-duration bond portfolio with a roughly two-year duration and an average credit quality rating of BBB. It holds a mix of public corporate and government bonds. Shares are minted natively on public blockchains, meaning Ethereum and Solana serve as the legal register of ownership. There’s no traditional wrapper sitting between the investor and the token. The minimum investment sits at $100, though the fund is restricted to eligible professional investors. Settlement happens in USDC or fiat currencies. Custody and tokenization are handled by BitGo Bank & Trust, BNY, Anchorage Digital, and Archax. The fund operates with daily net asset value calculations. Expansion beyond the UK BAGEY launched on June 22, 2026, through Baillie Gifford’s digital assets unit, BGDA UK. By September 29, it had already expanded its availa...