Baillie Gifford has launched BAGEY, the first publicly available, fully native UK-regulated tokenized bond fund, with BNY providing custody and wallet infrastructure across Solana and Ethereum.
update
Key details:
- "The Baillie Gifford Enhanced Yield Fund is not a token placed on top of a fund. It is a fund issued onchain, with the blockchain serving as the register of record," said Theo Golden, Head of Digital Assets and Tokenisation at Baillie Gifford. "Investors hold the fund directly: direct ownership, direct recourse."
- BAGEY is a short-duration fixed income fund, in plain terms, it invests in corporate bonds with relatively short maturities, which tend to carry less risk than longer-dated debt.
- The fund is denominated in U.S. dollars and currently offers a yield of around 7%, with a two-year duration and an average credit quality of BBB.
- The fund's benchmark is a composite index comprising 50% ICE BofA 1-3 Year US Treasury index and 50% ICE BofA 1-3 Year US Corporate index.
- It is daily-dealt, meaning investors can buy and redeem every day, and will be available to eligible professional investors in the UK, Switzerland, and the Cayman Islands.
- The minimum investment is $100, and investors can fund positions using either stablecoins, initially USDC, issued by Circle, or traditional fiat currency.
- BNY, one of the world's largest financial services companies, is providing the tokenisation and wallet infrastructure for the fund. NatWest Trustee and Depositary Services Limited will act as the fund's depositary.
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- Todor
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Todor Kostov
Director
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