Baillie Gifford Launched Tokenized Bond Fund BAGEY
The fund, which requires a $100 minimum investment, targets a 7% yield for professional investors on the blockchain.
Updated on Sept. 29, 2026 in Investing
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On June 22, 2026, asset manager Baillie Gifford launched the BAGEY bond fund, a short-duration portfolio issued natively on the Ethereum and Solana blockchains. The fund is designed for professional investors and recently expanded its reach to markets including Switzerland, Hong Kong, and the Cayman Islands.
Why it matters
By utilizing blockchain for tokenization and legal registration, the fund aims to provide modern settlement mechanisms for an actively managed portfolio of public corporate and government bonds. The expansion offers professional investors in specific international jurisdictions access to the firm's bond-market strategy with a $100 entry point.
The BAGEY fund maintains a $100 minimum investment requirement and targets a 7% annual yield. This strategy is managed by Baillie Gifford, an firm with 118 years of operations and assets currently between $237 billion and $260 billion.
The players
Baillie Gifford
An investment firm based in Edinburgh managing over $230 billion in assets and operating for over a century.
BitGo Bank & Trust
A financial institution providing institutional-grade custody and digital asset security services.
BNY
A global financial services company providing asset servicing and custody solutions for institutional investors.
Anchorage Digital
A regulated crypto-native bank offering custody and infrastructure for digital asset funds.
Archax
A regulated digital asset exchange and custodian that facilitates the issuance of tokenized financial instruments.
The details
The fund operates as an actively managed short-duration portfolio that holds a mix of government and corporate bonds. Shares are minted directly on public blockchains, which serve as the official legal register of ownership, while settlement can be completed in USDC or traditional fiat currencies. Daily net asset value calculations are provided to maintain transparency for professional participants.
Timeline
The BAGEY fund officially launched on June 22, 2026.
Expansion to professional investors in Switzerland, Hong Kong, and the Cayman Islands occurred on September 29, 2026.
Money Landscape
This development reflects a broader industry shift toward integrating traditional fixed-income strategies with distributed ledger technology. It highlights the evolving effort to standardize institutional bond portfolios within the regulatory frameworks for professional investor access.
While this fund is currently restricted to professional investors, its use of blockchain and USDC settlement signals a potential future shift in how bond funds might be accessed by broader retail markets. Professional investors should evaluate the liquidity and custody risks of tokenized holdings with a financial professional.
The takeaway
The move toward tokenizing bond funds like BAGEY illustrates an attempt to modernize the legal registration and settlement of institutional-grade portfolios. Investors should keep a close watch on how these blockchain-native tools alter the cost and accessibility of fixed-income assets over time.
Further reading
Learn more about the fundamentals of blockchain-based financial products in our Investing section.
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