The SFC-authorized Enhanced Yield Fund is issued on Ethereum and Solana, allows fiat or USDC subscriptions and redemptions, and offers T+0 liquidity for up to 10% of NAV.
Hong Kong’s Securities and Futures Commission (SFC, the city’s markets regulator) has authorized Baillie Gifford’s Enhanced Yield Fund, which the firm says is the city’s first fully native tokenized fund for professional investors. The actively managed fixed-income fund invests in short-duration government and corporate bonds and was built with BNY. The fund is issued natively on Ethereum and Solana, with investors holding it directly onchain and the blockchain acting as the official ownership register. Eligible investors can subscribe and redeem in fiat currency or USDC, while the product also supports T+0 redemptions (same-day settlement) for up to 10% of NAV and provides an indicative NAV for secondary market activity. Baillie Gifford said the launch shows how tokenization can improve investment infrastructure through direct onchain ownership, greater transparency and operational efficiency without weakening investor protections. Theo Golden, Head of Digital Assets and Tokenisation at Baillie Gifford, said the product differs from tokenized funds that merely add a digital wrapper to existing structures because investors hold the fund directly on blockchain. The UK-regulated OEIC offers a portfolio yielding about 7%, with an average BBB credit rating and a two-year duration. BNY will provide tokenization and wallet services, while NatWest Trustee and Depositary Services will serve as depositary. Baillie Gifford said the approval supports Hong Kong’s push to become a global tokenization hub and highlights how regulated investment products can use blockchain-based ownership, faster settlement and improved transparency.