Baillie Gifford now uses Ethereum as the legal ownership register for its Enhanced Yield Fund, a regulated UK product. The setup follows an FCA policy statement that permits blockchain-based unitholder registers. Access stays limited to professional investors in specific jurisdictions.
Baillie Gifford, a UK asset manager with over £286 billion in assets, is now using Ethereum as the legal ownership register for a regulated UK fund. On this fund, the blockchain is the official ledger, not a mirror of one.
The vehicle is the Enhanced Yield Fund, ticker BAGEY. It is being described as the first fully native UK-regulated tokenized fund to run its ownership registry on Ethereum.
One ledger instead of two
Most tokenized funds so far have used a two-ledger setup, in which a traditional transfer agent keeps the real record off-chain and a token acts as a digital twin. BAGEY drops that model, and its tokens are the legal representation of an investor's interest in the fund.
The fund was announced on June 22, 2026. Units were first made available on Solana, and units have been minted on Ethereum since August 5, 2026.
The FCA rule behind it
The change became possible through the Financial Conduct Authority's policy statement PS26/7, published on April 30, 2026. It permits DLT-based unitholder registers within OEIC structures, the standard UK wrapper for open-ended funds.
Baillie Gifford launched its fund roughly two months after that guidance landed.
Terms and limits
The fund holds a portfolio of government and corporate bonds and targets a yield of approximately 7%. Investors can trade daily, and the minimum ticket is $100.
BNY Mellon supplies the tokenization and wallet infrastructure, and NatWest Trustee and Depositary Services acts as the depositary.
However, the approximately 7% figure is a target, not a guarantee, and a bond portfolio still carries interest rate and credit risk. The fund is also aimed at professional investors in jurisdictions including the UK, Switzerland and the Cayman Islands, so it is not a retail on-ramp.
Source: Crypto Briefing
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