Baillie Gifford and BNY have launched the Baillie Gifford Enhanced Yield Fund, or BAGEY, a dollar-denominated, UK-regulated Open-Ended Investment Company invested in an actively managed portfolio of short-term corporate bonds. Baillie Gifford described the product as the UK’s first fully tokenized investment fund, saying it is designed to operate entirely onchain rather than using blockchain as a wrapper around a conventional fund structure. BNY is handling tokenization and wallet infrastructure, while NatWest Trustee and Depositary Services is serving as depositary. The fund is available to qualified investors in the UK, Switzerland and the Cayman Islands and is targeting a yield of around 7%. The launch comes as the UK refines the regulatory framework for blockchain-based funds. The Financial Conduct Authority authorized the first tokenized UCITS fund under its Blueprint model in January 2025 and in April published PS26/7, confirming that asset managers can use public distributed-ledger networks for fund registers if appropriate controls are maintained. Separately, a $BAGEY token appeared on Solana and later on Ethereum, but the Solana token has no verified connection to Baillie Gifford’s regulated product. A token tracker showed the Solana-listed token trading at essentially zero price with about 132 holders.